Schiff has been wrong for more than a decade. While on many things he is correct, he has an insane blindspot with regard to bitcoin. He seems unable to see that while gold is good, other things can be useful and safe and scarce like gold and consequently people who followed his advice lost out on huge gains. He will continue to be negative on bitcoin since he has pretty much painted himself into a corner where he has to keep bashing bitcoin and has no way out.
Kind of like Harry Dent (among others) who have been predicting a crash for 3 or 4 decades. Perhaps one will come (again) eventually but by attempting to time the market people have missed out on decades of gains.
You can't invest expecting the end of the world (metaphorical or real) because if it metaphorically comes you'll probably be wiped out anyway, and if it really comes financial assets will definitely be wiped out. You have to hope for the best while having some slight percent in "sleep well insurance", whatever "insurance" means to you: real estate, silver/gold, bitcoin, food, guns, ammo etc.
As far as Microstrategy goes, I never like leverage or borrowing to buy assets. It is very risky. Will to work for Microstrategy? Maybe, probably, maybe not. Who knows. Saylor is right about many things with regard to bitcoin, but parts of his strategy is risky.
Topic: [2024-11-01] Peter Schiff's Grim Forecast: Microstrategy's Bitcoin Gamble ... (Read 117 times)
November 01, 2024, 04:43:22 PM
November 01, 2024, 06:34:48 AM
I will say people should not mind this man at all. If it is gold, everything he will say would be good. But if it is bitcoin everything he will say would be bad. We all know that this man is a bitcoin critic. Everything he did say about bitcoin in the past has been bad but bitcoin has been in the other way and good.
November 01, 2024, 12:54:30 AM
Peter Schiff's Grim Forecast: Microstrategy's Bitcoin Gamble Nears Dangerous Limits
Peter Schiff warns that Microstrategy’s $42 billion plan to boost bitcoin holdings, funded by debt and equity, risks a dangerous liquidity trap. He called Michael Saylor “the Egg Man.”
Liquidity Trap Looms? Schiff’s Ominous Message for Microstrategy’s Bold Plan
Economist and gold advocate Peter Schiff has called out Microstrategy executive chairman Michael Saylor’s latest bitcoin acquisition strategy, likening it to an old investment joke about market overreach. In a post on social media platform X Thursday, Schiff wrote:
Schiff used the story of a fictional trader who, sensing a promising market, buys egg futures in ever-larger quantities as prices climb. The trader speculates on egg futures, initially purchasing 100 contracts at 25 cents each. After the price rises to 35 cents, he buys 1,000 more. As prices continue to surge — reaching 50, then 65, and eventually 95 cents per contract — he makes increasingly larger purchases, ultimately owning millions of contracts. When the price hits $1.75, he decides to sell 2 million contracts. His broker responds, “Sell to whom, you’re the egg man!”
The economist’s analogy underscores a potential liquidity trap that he believes could affect Saylor and his company, Microstrategy, if bitcoin prices eventually decline or stabilize.
Schiff, chairman of precious metals dealer SchiffGold, frequently criticizes bitcoin and promotes gold. Last week, he observed that while assets tied to a potential Trump victory are rallying, bitcoin is not, asking: “If a Trump win is bullish for bitcoin, why isn’t it rising with Trump’s betting odds?” The gold advocate suggested that speculators may have already invested and warned of a potential “Trump dump.” He also cautioned that the Federal Reserve risks repeating past policy mistakes with anticipated interest rate cuts and a likely return to quantitative easing (QE). According to Schiff, this approach will fuel more debt, drive consumer prices up, weaken the dollar, and reignite inflation.
Source: https://news.bitcoin.com/peter-schiffs-grim-forecast-microstrategys-bitcoin-gamble-nears-dangerous-limits/
Peter Schiff warns that Microstrategy’s $42 billion plan to boost bitcoin holdings, funded by debt and equity, risks a dangerous liquidity trap. He called Michael Saylor “the Egg Man.”
Liquidity Trap Looms? Schiff’s Ominous Message for Microstrategy’s Bold Plan
Economist and gold advocate Peter Schiff has called out Microstrategy executive chairman Michael Saylor’s latest bitcoin acquisition strategy, likening it to an old investment joke about market overreach. In a post on social media platform X Thursday, Schiff wrote:
Quote
Michael Saylor is the Egg Man. His latest announcement is that MSTR will spend another $42 billion to buy bitcoin, funded by issuing $21 billion in debt and $21 billion in equity over the next three years. This reminds me of a joke I heard a long time ago.
Schiff used the story of a fictional trader who, sensing a promising market, buys egg futures in ever-larger quantities as prices climb. The trader speculates on egg futures, initially purchasing 100 contracts at 25 cents each. After the price rises to 35 cents, he buys 1,000 more. As prices continue to surge — reaching 50, then 65, and eventually 95 cents per contract — he makes increasingly larger purchases, ultimately owning millions of contracts. When the price hits $1.75, he decides to sell 2 million contracts. His broker responds, “Sell to whom, you’re the egg man!”
The economist’s analogy underscores a potential liquidity trap that he believes could affect Saylor and his company, Microstrategy, if bitcoin prices eventually decline or stabilize.
Schiff, chairman of precious metals dealer SchiffGold, frequently criticizes bitcoin and promotes gold. Last week, he observed that while assets tied to a potential Trump victory are rallying, bitcoin is not, asking: “If a Trump win is bullish for bitcoin, why isn’t it rising with Trump’s betting odds?” The gold advocate suggested that speculators may have already invested and warned of a potential “Trump dump.” He also cautioned that the Federal Reserve risks repeating past policy mistakes with anticipated interest rate cuts and a likely return to quantitative easing (QE). According to Schiff, this approach will fuel more debt, drive consumer prices up, weaken the dollar, and reignite inflation.
Source: https://news.bitcoin.com/peter-schiffs-grim-forecast-microstrategys-bitcoin-gamble-nears-dangerous-limits/
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