Michael Saylor's $69.5 billion Bitcoin (CRYPTO: BTC) bet may look dazzling on paper — but Peter Schiff says it's fool's gold.
In a sharp critique, the gold bug argues that Strategy Inc.'s (NASDAQ: MSTR) 47% paper gain on its Bitcoin hoard is fragile, because the company can't actually cash it out without triggering a crash.
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In Schiff's telling, Saylor would've been far better off buying gold (as tracked by the SPDR Gold Trust (ARCA: GLD)), which would have turned that same investment into $61.5 billion — slightly less profit, but infinitely more liquid.
Paper Rich, Cash Poor?
Schiff's math puts the comparison into stark relief. Strategy's Bitcoin buys— $47.33 billion worth over time — now show $22 billion in paper gains. But in gold, the gain would have been around $14.2 billion.
The gap? Roughly $7.8 billion. Schiff calls it an illusion: while gold's gains are smaller, the metal's market can absorb a $61.5 billion liquidation without breaking stride. Bitcoin, on the other hand, is a thinly traded pond compared to gold's ocean.
If the largest corporate Bitcoin buyer suddenly sells it, Schiff warns, mass panic would follow, erasing those paper profits overnight.
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The Bigger Risk: Fragile Faith
What Schiff is really flagging isn't just liquidity — it's psychology. Bitcoin's cult status hinges on trust that whales such as Saylor won't dump. A fire sale from Strategy could shatter confidence, sparking cascading liquidations. In that scenario, the 47% gain flips to an outright loss, leaving Strategy investors holding the bag.
Gold doesn't carry that same existential fragility. Schiff's conclusion is blunt: Bitcoin's upside is eye-catching, but gold would've left Strategy in a "far stronger position."
Investor Takeaway
Investors chasing Bitcoin through Strategy must reckon with a paradox: big gains on paper can vanish in practice if liquidity dries up. Schiff's jab reminds markets that Bitcoin's brilliance rests on confidence — and that confidence, unlike gold, can crack.
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