Peter Schiff Doubles Down on Bitcoin Criticism in X Spaces Appearance

Peter Schiff: Bitcoin Will Fail, But MicroStrategy Keeps Buying More

Peter Schiff– Renowned gold advocate and foreign equities investor Peter Schiff, who manages over a billion dollars in assets, recently reignited his criticism of Bitcoin and Michael Saylor’s Bitcoin-heavy firm, MicroStrategy.

In a candid segment on X Spaces, Schiff bluntly stated, “Strategy will go bankrupt over Bitcoin.” While some might see this as reverse psychology, it appears Saylor isn’t deterred. MicroStrategy continues its aggressive Bitcoin accumulation, often buying in “whale-sized” amounts.

Schiff: “Digital Gold Marketing Was a Fraud”

Schiff challenged the foundational narrative of Bitcoin being a form of digital gold. He argued:

The idea that it’s digital gold has been destroyed because it trades nothing like gold. It’s just some kind of risk asset.

However, Bitcoin advocates have long maintained that its similarity to gold lies in its economic characteristics—like limited supply and mining difficulty—not in short-term price behavior.

Despite Schiff’s critique, Bitcoin has significantly outperformed gold over the past decade. If one were to judge based solely on returns, it would be difficult to call the asset’s performance a “fraud.” Bitcoin’s ROI since 2010 exceeds 2.8 billion percent—staggering by any measure.

Bitcoin as a Financial Infrastructure

Questioning its utility, Schiff asked:

What purpose does Bitcoin serve? We got plenty of risk assets… It’s a super risk asset that’s going to go up faster than other risk assets. Based on what?

He added, “At least a tech stock… you’re buying a business that could earn money.”

Yet, Bitcoin arguably offers a unique financial utility: a decentralized, secure, and transparent system for transferring value globally without intermediaries. This function—similar to core banking services—remains in high demand across the digital economy.

As of mid-April, Bitcoin’s price had increased 36% over the previous 12 months.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.