Economist and analyst Peter Schiff has dealt another blow to digital asset Bitcoin and MicroStrategy, a public company that invests heavily in cryptocurrencies.
Schiff has long been vocal about his disdain for bitcoin, and has now turned his attention to MicroStrategy and its former CEO, Michael Saylor.
Why did MicroStrategy buy bitcoin?
Through a series of tweets, Peter Schiff revealed to his more than 890,000 Twitter followers the real reason behind Michael Saylor and MicroStrategy's move to invest in Bitcoin.
According to analyst Schiff, Michael Saylor bought Bitcoin, in effect trying to save the company from liquidation.
He also criticized the company, saying it had nothing to do but open a speculative leveraged position on the digital asset Bitcoin.
As expected, Schiff's comments about Bitcoin were met with an indignant response.
One user took to the comments section to defend MicroStrategy's decision as the one made so that you could acquire the rarest and most desirable asset the world has ever seen.
“Saylor” and buying bitcoin:
Arguably, Michael Saylor is one of the most vocal Bitcoin bulls.
The former CEO of MicroStrategy stated that his decision to buy bitcoin was based on the belief that the digital asset is the future of finance.
In addition, Saylor revealed that he personally owned bitcoin before MicroStrategy began buying cryptocurrencies, with his personal holdings serving as proof of the asset's profitability.
Since the company expects the price of Bitcoin to rise over time, it believes it will serve as an effective hedge against inflation in the long term.
Saylor himself referred to bitcoin as “digital gold,” saying:
We find the global acceptance, brand recognition, ecosystem vitality, network dominance, architectural flexibility, technical facilities, and community spirit of Bitcoin as compelling evidence of its superiority as an asset class for those seeking a long-term store of value.
MicroStrategy's decision to invest in bitcoin also helped boost the company's popularity, as it went from a background company to one of the most well-known names among cryptocurrency enthusiasts.
MicroStrategy is currently the public company with the largest holdings of Bitcoin in the world.
The company holds 130,000 bitcoins as of September 30, 2022, worth over $2.1 billion at current market prices.
With a cumulative entry value of nearly $4 billion, the company records more than $1.7 billion in unrealized losses in the wake of the recent market downturn.
