One of the most popular bulls in the market admitted that buying bitcoin was the only way to avoid liquidating his firm.
According to Schiff’s post, adding digital gold to the balance sheet was, in effect, a “Hail Mary” to avoid liquidating the company. Other bitcoin bulls rushed to defend Saylor’s firm, suggesting that holding bitcoin could be a sensible way to rebalance the portfolio.
First time I’ve heard @saylor admit that adding #Bitcoin to @MicroStrategy’s balance sheet was essentially a “Hail Mary” to avoid liquidating the company. If all $MSTR can do is speculative leveraged bitcoin positions, it means nothing.
– Peter Schiff (@PeterSchiff) December 20, 2022.
Schiff disagreed, saying that bitcoin only leads to long-term losses, is hardly scarce, and is “never” desirable. He concluded by adding that there is no need to buy bitcoin.
Dan Held also joined the conversation and used gold in a similar fashion to Schiff’s bitcoin example. Others emphasized that Schiff was forced to liquidate his bank and Wells Fargo was fined 2% of its market value. Bitcoin supporters suggest that had Schiff kept his money in Bitcoin, he would still have kept his funds intact.
Schiff is known to criticize bitcoin and those who publicly promote it as an investment vehicle and subject to volatility. Rather, Schiff has been an outspoken proponent of gold, which has surged in the market over the past few weeks while bitcoin has struggled to maintain the same level and gain a foothold.
Michael Saylor, on the other hand, is optimistic, something he has made clear repeatedly in the past. The company is happy with current market conditions and remains perfectly healthy financially.