Economist Argues Bitcoin Will Push MicroStrategy to Bankruptcy

Gold prices surged to unprecedented levels on Monday, capturing the attention of investors worldwide. Amid this spectacle, Peter Schiff, a staunch gold advocate, criticized Mark Cuban and Michael Saylor for their preference for Bitcoin over the traditional safe haven of gold.

On Monday, gold ascended by $33, reaching a record $2,110 per troy ounce, as per SPDR Gold Trust GLD data.

Peter Schiff Declares a War Against Bitcoin Advocates

Schiff pointed out that the media favors Bitcoin over Gold, especially following Cuban’s dismissal of gold as an investment.

Mark Cuban, an influential figure in the investment community, has been outspoken about his preference for Bitcoin. His stance, particularly on a day when gold shined brightest, drew sharp commentary from Schiff.

“Despite gold’s $33 rise today, hitting its highest price ever during US trading hours, the only time I heard gold mentioned on CNBC was when Mark Cuban said he wasn’t buying any. He boasted that he “chooses Bitcoin over gold every day.” This shark is swimming in the wrong tank,” Peter Schiff said.

Moreover, Cuban’s investment strategy extends beyond Bitcoin. His portfolio, publicly tracked by Arkham, includes a substantial investment in various altcoins, notably the Artificial Liquid Intelligence (ALI) token, signifying his belief in the potential of blockchain technologies beyond just Bitcoin.

Schiff’s criticism also extended to Michael Saylor and his firm, MicroStrategy, known for its aggressive Bitcoin acquisitions. Schiff warned about the speculative nature of leveraging to buy Bitcoin, as MicroStrategy planned to sell $600 million in convertible senior notes. He argued that such strategies might lead to significant losses, potentially leading the company to bankruptcy.

“Bitcoin will kill Saylor and sink MicroStrategy,” Schiff remarked

Despite Schiff’s warnings, Bitcoin’s performance has been noteworthy. The cryptocurrency briefly reached a new all-time high, signaling strong institutional interest and optimism about its future, particularly with the anticipated Bitcoin halving.

MicroStrategy’s Bitcoin investment under Saylor’s guidance illustrates a different narrative, with the company’s unrealized Bitcoin profits soaring over $6.7 billion, demonstrating the lucrative potential of digital currencies.

The ongoing debate between gold and Bitcoin enthusiasts reflects broader discussions in the investment world. However, the resilience of Bitcoin and strategic successes like those of MicroStrategy indicate growing confidence in digital assets as viable investment options.

Read more: Who Owns the Most Bitcoin in 2024?

“Institutional bullish sentiment is strong, and with 45 days remaining until the Bitcoin halving, coupled with expectations of a mid-year Fed rate cut, Bitcoin is expected to find support but can potentially experience volatility in March to challenge historical highs. There’s resistance at $69,000, while support below is in the range of $48,000 to $52,000,” Bitget South Asia Head, Jyotsna Hirdyani told BeInCrypto.