$BTC #TradeWarEases

Schiff warns of "massive real losses" for Saylor, of Strategy, if the price of Bitcoin falls

Michael Saylor has just invested another $1.34 billion in Bitcoin (BTC), adding 13,390 BTC at an average of approximately $99,856 per coin. This raises Strategy's total to 568,840 BTC, purchased for approximately $39.41 billion, with an average cost of $69,287. Therefore, it is the same strategy as almost every Monday: buy more, hold longer.

But Peter Schiff doesn't buy into this logic, as he is probably the most vocal critic of cryptocurrencies and points out what he sees as the obvious problem: if the next movement of the Bitcoin price is downward, Strategy's position could start to crumble quickly.

According to Schiff, Saylor's latest purchase will likely raise the company's average cost above $70,000. If Bitcoin falls below that figure, unrealized losses could become real, especially since much of that inventory was acquired with debt. Schiff's argument is simple: borrowing billions to hold a volatile asset works very well when prices rise, but things get complicated when they do not.