An even greater madness than Bitcoin itself!
The economist and eternal Bitcoin critic, Peter Schiff, has sparked a new controversy. This time, he attacked investment strategies involving buying shares of companies whose only business is acquiring Bitcoin, calling them "more absurd than buying the cryptocurrency directly."
What exactly did he say?
"If you want to invest in Bitcoin, buy it directly. If you want shares, look for real companies with real businesses."
Does his criticism make sense? Here we break it down:
Key points of the debate:
1. Double risk: Buying shares of companies that only buy BTC exposes the investor to the risk of the cryptocurrency and the performance of the company. Double-edged!
2. Lack of operational backing: Companies that do not generate income outside of their investments in BTC are vulnerable to volatility without a financial cushion.
3. Perception manipulation: Some companies use Bitcoin as bait to inflate the price of their shares without solid fundamentals.
But... what if the market goes up?
Yes, the gains can be explosive. But as Schiff rightly says, if you are going to play, play with clear cards: buy BTC directly and avoid intermediaries with no real purpose.
Do you agree with Peter Schiff or do you think he is just defending gold at all costs?
Open debate in the comments.
