Just at the time when Peter Schiff’s anti-Bitcoin rant continues, financial institutions and investors continue to double down their bets on BTC.
Later on Friday, December 4, Michael Saylor’s business intelligence firm MicroStrategy announced the purchase of an additional 2,574 Bitcoins worth $50 million. MicroStrategy is one of the biggest buyers and public listed companies to buy Bitcoin as an inflation hedge.
Previously, by September 2020, the business intelligence bought Bitcoins worth $425 throughout 2020. The latest buy takes the companies total purchase to $475 million worth of BTC. With this, MicroStrategy holds 41,000 Bitcoins (BTC) or 2% of the entire supply.
MicroStrategy has purchased approximately 2,574 bitcoins for $50.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $19,427 per bitcoin. 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 close to its all-time high. This goes to show that the company is expecting some targets ahead for Bitcoin ahead in 2021. Many financial analysts have already given six-figure targets above $100K for BTC price in 2021.
However, Schiff continues to rejoice in the fact that Bitcoin (BTC) hasn’t yet moved past $20,000. He still hints at the possibility of a double-top at this point and expects a possible correction.
Bitcoin bulls are celebrating because after 3 years #Bitcoin finally managed to eke out a new high. But what makes them so sure that this marginal new high doesn't constitute a massive double top? Perhaps they should put away the champagne until an actual breakout is confirmed.
— Peter Schiff (@PeterSchiff) December 4, 2020
Investors Peter Schiff might be right based on his market experience and the study of charts, however, he simply seems to be refusing to acknowledge the fact that Bitcoin is already trading at a 160% premium year-to-date. Even if Bitcoin goes to correct say 30% as per its historical trends, it will still end up with 100% gains from the beginning of 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 witnessed massive inflows to its Grayscale Bitcoin Trust (GBTC) which now manages $10.5 billion worth of assets under management. Recently, even big financial giants like Guggenheim are planning to invest in Bitcoin through GBTC.
To promote its GBTC, Grayscale has recently launched its Drop Gold campaign in a move to attract institutional players to buy their GBTC shares.
If the world is digital, your investments should be too. It’s time to #DropGold. Go digital. Go Grayscale.
— Grayscale (@Grayscale) December 1, 2020
Well, this has triggered Peter Schiff the most who has gone on an all-out attack suggesting how beneficial it is to buy Gold mining stocks rather than GBTC shares.
Unlike #Bitcoin and #gold , GBTC and gold ming stocks do 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 pick up some gold mining stocks.
— Peter Schiff (@PeterSchiff) December 3, 2020
Interestingly, while gold has appreciated around 30% year-to-date, Bitcoin is trading at a 160% premium. Even the GBTC shares (OTCMKTS: GBTC) are trading at a 200% premium and the MicroStrategy stock (NASDAQ: MSTR) is trading at a 120% premium year to date.