In a fiery critique, famend economist Peter Schiff slammed MicroStrategy founder Michael Saylor for what he labels because the “Bitcoin pyramid scheme.” This sparring occurred within the wake of Saylor’s speech on the Nashville Bitcoin Conference 2024. During the speech, Saylor recommended that the United States ought to again its greenback with Bitcoin, likening the digital asset to “cyber Manhattan.”
Michael Saylor Urges US Government To Hoard More BTC
Saylor’s analogy drew historic parallels, referencing landmark acquisitions such because the Louisiana buy and the acquisition of Alaska. He argued that these acquisitions strengthened the greenback by boosting the nation’s financial foundations. Hence, he emphasised that embracing Bitcoin might place the U.S. for future financial management.
“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 prolonged to the strategic property already held by the U.S. authorities. He famous that the U.S. owns the vast majority of the world’s gold and controls a considerable portion of the nation’s land. The MicroStrategy founder urges the same strategy 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 stated. Thus, Saylor concluded his speech with a daring declaration: “The U.S. government should own the majority of the Bitcoin in the world.”
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Peter Schiff Blames Saylor For “Bitcoin Pyramid Scheme”
Saylor’s imaginative and prescient of the U.S. authorities amassing a major 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 shortly escalated when Peter Schiff was challenged to outline 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 additional debate, with one person questioning whether or not any type of worthwhile funding could possibly 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 person countered.
Peter Schiff defended his place, distinguishing conventional investments from Bitcoin. He vehemently declared that BTC doesn’t have any “yield” regardless of the spectacular returns through the years.
Schiff acknowledged, “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 additionally took purpose on the BTC documentary titled, “God Bless Bitcoin.” He unearthed the “biggest lie” within the documentary and doubled down on claims of BTC pyramid scheme. Schiff famous:
“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 stored criticizing the current remark 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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