Peter Schiff Slams Michael Saylor's Bitcoin Strategy As 'Total....'
Bitcoin critic Peter Schiff has renewed his criticism of Michael Saylor after the Strategy (NASDAQ:MSTR) executive outlined his aggressive plan to buy as much Bitcoin (CRYPTO: BTC) as possible and convert it into BTC-backed digital credit.
What Happened: Speaking at the Bitcoin MENA 2025 conference, Saylor argued that "Bitcoin is digital capital," a form of pristine collateral now effectively endorsed by the U.S. government and major financial regulators under President Trump.
He also noted that U.S. banks have begun custodying BTC and issuing BTC-backed credit, calling this a global regulatory turning point given the influence of U.S. financial policy worldwide.
Saylor said Strategy aims to "buy all the Bitcoin sellers can sell," positioning itself as the first digital treasury converting volatile digital capital (BTC) into stable, yield-producing digital credit.
Saylor argued that while Bitcoin is long-duration and volatile, credit provides predictable cash flow, something many investors prefer.
Strategy's credit products — STRK, STRF, STRD, STRE, STRC – are designed as perpetual, high-yield, Bitcoin-backed instruments like preferred shares or bonds.
Schiff's Critique
Peter Schiff dismissed Saylor's vision as unrealistic, claiming it's impossible to eliminate Bitcoin's volatility while simultaneously guaranteeing a perpetual 10% yield.
He also alleged that Bitcoin's political support stems not from fundamentals but from politicians "doing favors for those who helped get them elected."
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Why It Matters: Saylor's core thesis is that Strategy creates "credit as a product", unlike traditional corporate bonds that are issued simply for financing.
Because Bitcoin appreciates over time, he argues that BTC-backed credit is fundamentally superior to credit backed by depreciating assets.
He further claims that issuing credit allows Strategy to increase its BTC per share, essentially offering investors "leveraged Bitcoin equity" designed for long-term holders.
Saylor ultimately envisions Bitcoin-backed credit forming a global free-market yield curve that outcompetes traditional money markets and believes every major economy will eventually need Bitcoin treasury companies to repair broken savings systems.
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