At a time when Peter Schiff’s anti-Bitcoin talk continues, financial institutions and investors are further doubling their bets on BTC.
Later on Friday, December 4th, Michael Saylor’s business intelligence firm MicroStrategy announced the purchase of an additional 2,574 bitcoins valued at $ 50 million. MicroStrategy is one of the largest buyers and publicly traded companies buying Bitcoin as an inflation hedge.
Before that, through September 2020, Business Intelligence bought $ 425 worth of bitcoins throughout 2020. The final purchase adds $ 475 million to the company’s total purchase on BTC. With that, MicroStrategy holds 41,000 Bitcoins (BTC) or 2% of the total supply.
MicroStrategy has purchased approximately 2,574 bitcoins for $ 50.0 million in cash at an average price of approximately $ 19,427 per bitcoin, as per its Treasury Reserve Policy. We now hold approximately 40,824 bitcoins.https: //t.co/nwZcM9zAXZ
– Michael Saylor (@michael_saylor) December 4, 2020
Interestingly, the latest purchase comes at a time when Bitcoin is already trading near its all-time high. This shows that the company expects some targets for Bitcoin in 2021. Many financial analysts have already given six-digit targets for the BTC price of over $ 100,000 in 2021.
However, Schiff is still pleased that Bitcoin (BTC) has not yet topped $ 20,000. At this point, he still points to the possibility of a double leadership and expects a possible correction.
Bitcoin bulls are celebrating because #Bitcoin has finally managed to hit a new high after 3 years. But what makes you so sure that this marginal new high is not a massive double top? Perhaps they should put the champagne away until an actual outbreak is confirmed.
– Peter Schiff (@PeterSchiff) December 4, 2020
Investor Peter Schiff may be right based on his market experience and studying charts, but he just seems to refuse to acknowledge the fact that Bitcoin has been trading at a premium of 160% since the start of the year. Even if Bitcoin corrects around 30% according to its historical trends, it will still end up seeing 100% gains from early 2020 and over 200% gains from its March 2020 lows.
Grayscale’s drop gold campaign triggers Peter Schiff even more
Digital asset manager Grayscale has seen massive inflows into its Grayscale Bitcoin Trust (GBTC), which now has $ 10.5 billion in assets under management. Recently, even major financial giants like Guggenheim are planning to invest in Bitcoin through GBTC.
To promote its GBTC, Grayscale recently launched its Drop Gold campaign to encourage institutional players to buy their GBTC shares.
If the world is digital, so should your investments. It’s time for #DropGold. Go digital. Go grayscale.
– Grayscale (@grayscale) December 1, 2020
Well, this is what sparked Peter Schiff the most, who launched a widespread attack suggesting the benefit of buying gold mining stocks instead of GBTC stocks.
Unlike #Bitcoin and #gold, GBTC and Gold Ming stocks have something in common. GBTC is a way to speculate on the future price of Bitcoin, and gold stocks are a way to speculate on the future price of gold. The smarter trade is to drop GBTC and buy some gold mining stocks.
– Peter Schiff (@PeterSchiff) December 3, 2020
Interestingly, while gold has gained around 30% in value since the beginning of the year, Bitcoin is traded at a premium of 160%. Even GBTC shares (OTCMKTS: GBTC) are trading at a premium of 200%, and MicroStrategy stock (NASDAQ: MSTR) is trading at a premium of 120% this year to date.
Disclaimer of liability
The content presented may contain the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication assumes no responsibility for your personal financial loss.
About the author
Bhushan is a FinTech enthusiast and has a keen understanding of the financial markets. His interest in business and finance draws his attention to the emerging blockchain technology and cryptocurrency markets. He is constantly in a learning process and motivates himself by sharing the knowledge he has acquired. In his spare time he reads crime novels and sometimes explores his cooking skills.