Vocal Bitcoin critic and gold advocate Peter Schiff has escalated his attacks on Michael Saylor’s Strategy ($MSTR), warning the company could be facing a catastrophic “death spiral.”
Schiff is targeting Strategy’s issuance of high-yield preferred shares ($STRC), which carry an 11.5% yield. He argues that this strategy is mathematically doomed, claiming the company cannot sustain such high payouts while Bitcoin remains volatile.
For young traders, Schiff’s warnings are nothing new. He has called Bitcoin a bubble for over a decade, missing multiple 1,000% rallies along the way. While his caution on leverage is worth noting, his track record of predicting crypto’s demise has been consistently wrong.
The lesson? Listen to criticism, but check the source’s history. Schiff sells gold. He has every incentive to attack Bitcoin. Those who understand bias tend to see through the fear and position accordingly.