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Sujit Kumar
Sep 11, 2024
by Sujit Kumar

Peter Schiff Challenges Michael Saylor’s Bitcoin Scarcity Argument

Bitcoin Scarcity Argument
Renowned economist Peter Schiff recently challenged MicroStrategy co-founder Michael Saylor’s bullish stance on Bitcoin. In an X post, Schiff acknowledged Bitcoin's deflationary nature but argued that its value hinges on continuous demand. While Saylor has long promoted Bitcoin’s scarcity as a key driver of its price, Schiff warned that when demand decreases, Bitcoin’s price could crash.

Scarcity Alone Isn't Enough, Says Schiff

Schiff’s main critique revolves around Saylor’s focus on Bitcoin's limited supply without considering the risks of declining demand. He noted that when the influx of new buyers slows down and existing holders want or need to sell, the price could plummet. Schiff contrasted this with gold, arguing that there will always be demand for gold due to its intrinsic utility, while Bitcoin may not enjoy perpetual demand.

Saylor’s Bitcoin Success Defended

Despite Schiff’s warnings, Michael Saylor remains confident in his Bitcoin-focused strategy, which has delivered impressive returns. Saylor has previously stated that since August 2020, MicroStrategy’s approach to acquiring Bitcoin has resulted in an annual return of 44%, far outpacing the S&P 500's 12% annual return. Schiff, a longtime critic of Bitcoin, has indicated that he might reconsider his position if Bitcoin becomes a widely adopted payment method.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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Peter Schiff Challenges Michael Saylor Bitcoin Scarcity Argument
Peter Schiff Challenges Michael Saylor’s Bitcoin Scarcity Argument
Sujit Kumar
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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