Recent discussions revolving around the potential utilization of Bitcoin [BTC] confiscated from the Silk Road marketplace saw renowned economist and vocal BTC critic Peter Schiff sharing his thoughts on the matter on X (previously Twitter).
During the conversation on October 9th, he engaged in talks concerning the upcoming auction by the U.S. government of 69,370 Bitcoin, which is estimated to be worth around $4.3 billion.
Schiff’s Light-hearted Dig at Michael Saylor
Famous for his preference of gold over digital currencies, Schiff amusingly proposed that Michael Saylor, the CEO of MicroStrategy, should contemplate acquiring the $4.3 billion through borrowing to invest in BTC.
His exact words were,
“As the U.S. government appears set to sell off 69,370 #Bitcoin, valued at roughly $4.3 billion in today’s market, I think @saylor should leverage $MSTR for another $4.3 billion and make the purchase. Who’s in agreement?”
Reasoning behind the Focus on Saylor
Schiff’s decision to single out Saylor is based on the latter’s audacious moves at MicroStrategy, where he has led the charge in acquiring substantial amounts of Bitcoin since 2020.
Predictably, Schiff has consistently criticized this approach as a risky venture.
For those not familiar, MicroStrategy recently raised over $1 billion, a part of which was used to procure an additional 7,420 BTC.
This latest acquisition elevated the company’s total Bitcoin holdings to 252,220 coins, presently valued at around $16 billion.
Response from the Community
As expected, the post sparked significant interaction within the crypto community.
Starting with Henry Scavacini, who highlighted Bitcoin’s six crucial characteristics: durability, portability, divisibility, fungibility, scarcity, and acceptability.
Scavacini also introduced a seventh attribute – immutability, underscoring its exclusive nature regarding blockchain-related assets.
This addition triggered further conversations among community members, with many stepping up to defend BTC’s stature as a form of “hard money.”
In reply to this, Schiff expressed,
“It’s missing the most critical element. Genuine intrinsic value.”
Schiff: The Bitcoin Opponent
For those unacquainted with his standpoint, Schiff has consistently voiced his opposition to BTC, arguing that it lacks the concrete value possessed by gold.
Recently, he asserted that the hype surrounding Bitcoin has led investors to disregard the remarkable performance of gold, which has reached unprecedented levels.
Alternate Proposals Under Discussion
In contrast to Schiff’s suggestion, Democratic Representative Ro Khanna put forward the idea of the government holding onto the confiscated Bitcoin as a strategic asset.
Meanwhile, Republican presidential contender Donald Trump has also shown enthusiasm for establishing a BTC reserve should he secure the election victory.
He mentioned,
“Upon my election, it will be the official stance of my administration, the United States of America, to hold onto all the Bitcoin currently owned or obtained by the government.”
Consequently, as the U.S. government readies to sell off its seized BTC, the cryptocurrency’s value has dropped further by 1.81%.
According to CoinMarketCap, BTC was trading around $61,010 at the time.