Why MicroStrategy Is Still Buying Bitcoin Despite $53 Million Loss?

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Peter Schiff Slams MicroStrategy’s Michael Saylor Over “Bitcoin Pyramid Scheme” – Crypto News

Published

2 years ago

July 26, 2024

Dripp

In a fiery critique, renowned economist Peter Schiff slammed MicroStrategy founder Michael Saylor for what he labels as the “Bitcoin pyramid scheme.” This sparring occurred in the wake of Saylor’s speech at the Nashville Bitcoin Conference 2024. During the speech, Saylor suggested that the United States should back its dollar with Bitcoin, likening the digital asset to “cyber Manhattan.”

Michael Saylor Urges US Government To Hoard More BTC

Saylor’s analogy drew historical parallels, referencing landmark acquisitions such as the Louisiana purchase and the acquisition of Alaska. He argued that these acquisitions strengthened the dollar by boosting the nation’s economic foundations. Hence, he emphasized that embracing Bitcoin could position the U.S. for future economic leadership.

“And the future of the country is in cyberspace,” Saylor proclaimed. The MicroStrategy founder added, “Bitcoin is, in essence, cyber Manhattan. The way you back the dollar is you buy Manhattan for pieces of paper and trinkets and you buy it before it’s worth hundreds of trillions of dollars.”

Saylor’s argument extended to the strategic assets already held by the U.S. government. He noted that the U.S. owns the majority of the world’s gold and controls a substantial portion of the nation’s land. The MicroStrategy founder urges a similar approach for BTC.

“The United States owns the majority of the gold in the world. The U.S. federal government owns 28% of the land in the United States,” he said. Thus, Saylor concluded his speech with a bold declaration: “The U.S. government should own the majority of the Bitcoin in the world.”

Also Read: Senator Cynthia Lummis Confirms Big Announcement In Bitcoin Conference

Peter Schiff Blames Saylor For “Bitcoin Pyramid Scheme”

Saylor’s vision of the U.S. government amassing a significant BTC reserve was met with sharp criticism from Peter Schiff. “Ironically, Michael Saylor is looking for a government #Bitcoin bailout,” Schiff wrote on X. The economist added, “He knows the Bitcoin blockchain letter is running out of chain and wants the U.S. government to become the buyer of last resort, leaving American taxpayers as the ultimate bag holders in the Bitcoin pyramid scheme.”

The debate quickly escalated when Peter Schiff was challenged to define a pyramid scheme. He responded, “A form of investment (illegal in the US and elsewhere) in which paying participants recruit more participants, with returns being given to early participants using money contributed by later ones.”

Schiff’s definition sparked further debate, with one user questioning whether any form of profitable investment could be labeled a pyramid scheme. “So then literally everything in the world is a pyramid scheme. If I buy something and sell it higher, it’s a pyramid scheme? If I buy gold and sell it higher because more people buy, it’s a pyramid scheme?” the user countered.

Peter Schiff defended his position, distinguishing traditional investments from Bitcoin. He vehemently declared that BTC doesn’t have any “yield” despite the impressive returns over the years.

Schiff stated, “No, people buy stocks for earnings and dividends, they buy real estate for rent, bonds for interest. That’s not a pyramid. Commodities like gold have value because they are used. Gold is used to make jewelry or computer chips. Bitcoin has no yield and isn’t used to make anything.”

Remarks On Bitcoin Documentary

Peter Schiff also took aim at the BTC documentary titled, “God Bless Bitcoin.” He unearthed the “biggest lie” in the documentary and doubled down on claims of BTC pyramid scheme. Schiff noted:

“One of the biggest lies told in the fake documentary #GodBlessBitcoin is that no one has an unfair advantage. That everyone in #Bitcoin is equal. As with any pyramid scheme, those who got in early at lower prices have a huge advantage over those who get in later at higher prices.”

Furthermore, he kept criticizing the recent comment by MicroStrategy’s Saylor. Schiff added, “Another whopper was Saylor claiming that if you worship energy conservation you should also worship Bitcoin, as it conserves energy. Bitcoin is the biggest waste of energy ever devised.”

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