Michael Saylor, cofounder and executive chairman of MicroStrategy, is getting an abundance of attention after saying that the U.S. government should buy as much Bitcoin as it has in gold reserves.
Robert F. Kennedy Jr. first came up with this idea, which Saylor then shared on social media. This caused prominent crypto skeptic Peter Schiff to criticize Saylor.
Bitcoin Pyramid Scheme Allegations
Schiff, who is known for supporting gold and criticizing Bitcoin, said that Saylor was trying to get the government to help BTC in a roundabout way.
He said that Saylor knows that BTC is losing value and wants the U.S. government to buy it, which would put American taxpayers at risk in what he calls a “pyramid scheme.”
Schiff says that a pyramid scheme includes getting new people to invest so that earlier investors can get returns. The investments have no real value or usefulness. Schiff said that BTC fits this model.
He compared it to traditional investments like stocks, real estate, bonds, or commodities like gold, which can be used right away and have possible returns.
Saylor has not stated outright that he wants a loan, but his support on social media has led to more rumors. At the current price, the U.S. government would have to buy about 9.4 million Bitcoins to match the country’s gold reserves. This is almost 45% of all the Bitcoins that will ever be made.
