Bitcoin critic Peter Schiff has acknowledged what he described because the “first real use case” for Bitcoin. Known for supporting gold over digital property, Peter Schiff has repeatedly stated that Bitcoin has no utility.
However, in a current put up on X, he pointed to a scenario involving funding supervisor Jim Chanos for example the place Bitcoin could serve a sensible function.
Peter Schiff Critiques Michael Saylor Bitcoin Buying Strategy
According to an X put up, Bitcoin critic Peter Schiff remarked that Bitcoin would possibly lastly have a use — although not the one Bitcoin advocates promote. He referred to investor Jim Chanos, who just lately disclosed that he bought Bitcoin to hedge towards his quick place in MicroStrategy inventory (MSTR).
Strategy, led by Executive Chairman Michael Saylor, has continued to extend its Bitcoin holdings. The firm now owns almost 570,000 BTC. This has led some market watchers to view MSTR as a proxy for Bitcoin with added company threat. Schiff mocked this technique, stating that Saylor has “accidentally created a real use case for Bitcoin,” the place buyers use BTC to guard themselves from the dangers tied to Saylor’s personal agency.
Investment supervisor Chanos is understood for shorting shares of firms he considers to be overvalued or structurally weak. Like Peter Schiff, he reportedly sees MSTR as overleveraged as a result of its Bitcoin technique. By proudly owning Bitcoin whereas shorting MSTR, Chanos goals to restrict his losses in case Bitcoin costs surge.
Chanos Bets Against MicroStrategy Valuation
In an X put up, Chanos defined that buyers are paying an excessive amount of for every greenback of Bitcoin publicity via Strategy. According to his assertion, MSTR stock is buying and selling at a premium that far exceeds the precise worth of its Bitcoin holdings. He argued,
“Investors are paying $3 of stock price to gain $1 of Bitcoin exposure.”
Peter Schiff used this state of affairs to argue that Bitcoin’s solely sensible function has change into a monetary hedge — not as a foreign money or retailer of worth. Chanos’s hedge technique implies that whereas MSTR’s inventory could fall as a result of overvaluation, the Bitcoin he holds may cushion these losses.
Strategy has additionally confronted criticism for borrowing funds to purchase Bitcoin. The firm recently added 13,390 BTC for roughly $1.34 billion. Critics warn that such aggressive buying may expose the agency to threat if Bitcoin’s worth declines. Bitcoin critic Peter Schiff has echoed these considerations, saying that enormous BTC worth drops may flip paper income into actual monetary stress for MicroStrategy.
Despite this backlash, Pro-XRP lawyer John Deaton additionally added to the dialogue, evaluating Michael Saylor’s long-term Bitcoin technique to that of Warren Buffett’s funding strategy with Berkshire Hathaway. He acknowledged that Saylor could also be aiming to regulate as much as 5% of the full Bitcoin provide in circulation regardless of the mockery.
MicroStrategy (MSTR) Stock Performance
MicroStrategy (MSTR) inventory has gained almost 40% in 2025, reflecting Bitcoin’s upward pattern. However, Peter Schiff argues that this progress is tied extra to Bitcoin worth motion than to the corporate’s core enterprise efficiency. This has led to considerations about sustainability if Bitcoin enters a correction section.
However, the current buys by corporations like Metaplanet and Tether-backed company Twenty One Shares have boosted the optimism for Bitcoin worth to breach the resistance to a brand new all-time excessive.
The broader Bitcoin market is at present in a worth consolidation vary between $100,678 and $105,700. Analysts forecast a possible breakout if the BTC worth holds above key ranges. Glassnode information reveals Bitcoin’s realized cap has elevated by $30 billion since April 20, suggesting new capital is coming into the market which is a precursor to a bullish breakout.
Kelvin Munene Murithi
Kelvin is a distinguished author with experience in crypto and finance, holding a Bachelor’s diploma in Actuarial Science. Known for his incisive evaluation and insightful content material, he possesses a powerful command of English and excels in conducting thorough analysis and delivering well timed cryptocurrency market updates.
Disclaimer: The offered content material could embody the non-public opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any duty for your private monetary loss.
