Peter Schiff Says Bitcoin Finally Has a Use, Mocks MicroStrategy’s BTC Bet

By: bitcoin ethereum news|2025/05/15 10:30:08

Peter Schiff, a long-time Bitcoin and crypto critic, has recently acknowledged what he describes as the “first real use case” for BTC. In a satirical post on X, Peter Schiff said that he is wrong, commenting on investment manager Jim Chanos’ BTC purchase. Schiff has been reiterating for years that Bitcoin has no real-world utility. Peter Schiff Critiques Michael Saylor’s Bitcoin Buying Strategy Bitcoin critic Peter Schiff remarked that Jim Chanos’ purchasing Bitcoin to hedge against his short position in MicroStrategy stock (MSTR) is an example of Bitcoin’s practical role. Bitcoin might finally have a use, he said, though not the one Bitcoin advocates like Michael Saylor have in mind. Strategy, led by Executive Chairman Michael Saylor, has continued to increase its Bitcoin holdings. The company now owns nearly 570,000 BTC. This has led some market watchers to view MSTR as a proxy for Bitcoin with added corporate risk. Schiff mocked this strategy, stating that Saylor has “accidentally created a real use case for Bitcoin,” where investors use BTC to protect themselves from the risks tied to Saylor’s own firm. Investment manager Chanos is known for shorting stocks of companies he considers to be overvalued or structurally weak. Like Peter Schiff, he reportedly sees MSTR as overleveraged due to its Bitcoin strategy. By owning Bitcoin while shorting MSTR, Chanos aims to limit his losses in case Bitcoin prices surge. Chanos Bets Against MicroStrategy Valuation In an X post, Chanos explained that investors are paying too much for each dollar of Bitcoin exposure through Strategy. According to his statement, MSTR stock is trading at a premium that far exceeds the actual value of its Bitcoin holdings. He argued, “Investors are paying $3 of stock price to gain $1 of Bitcoin exposure.” Chanos’s hedge strategy implies that while MSTR’s stock may fall due to overvaluation, the Bitcoin he holds could cushion those losses. MicroStrategy recently added 13,390 BTC for approximately $1.34 billion, but faced criticism for borrowing funds to buy Bitcoin. Bitcoin critic Peter Schiff has echoed these concerns, saying that large BTC price drops could turn paper profits into real financial stress for Strategy. Schiff argued that Strategy is no longer operating as a software company but as a Bitcoin-holding entity. He questioned the logic behind buying shares of a company whose main business activity is acquiring Bitcoin, rather than investing directly in Bitcoin or in companies with actual operating revenues. He said, “If you want to buy Bitcoin, then buy Bitcoin. If you want to invest in the stock market, buy a company with an actual business.” Despite this backlash, Pro-XRP lawyer John Deaton has praised Michael Saylor, comparing his long-term Bitcoin strategy to that of Warren Buffett’s investment approach with Berkshire Hathaway. He stated that Saylor may be aiming to control up to 5% of the total Bitcoin supply in circulation despite the mockery. MicroStrategy (MSTR) Stock Performance MicroStrategy (MSTR) stock has gained nearly 40% in 2025, reflecting Bitcoin’s upward trend. However, Peter Schiff argues that this growth is tied more to Bitcoin price movement than to the company’s core business performance. This has led to concerns about sustainability if Bitcoin enters a correction phase. However, the recent buys by firms like Metaplanet and Tether-backed company Twenty One Shares have boosted the optimism for Bitcoin price to breach the resistance to a new all-time high. The broader Bitcoin market is currently in a price consolidation range between $100,678 and $105,700. Analysts forecast a potential breakout if the BTC price holds above key levels. Glassnode data shows Bitcoin’s realized cap has increased by $30 billion since April 20, suggesting new capital is entering the market, which is a precursor to a bullish breakout. ✓ Share: Kelvin Munene Murithi Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates. Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss. Source: https://coingape.com/peter-schiff-mocks-michael-saylor-for-creating-bitcoins-most-ironic-use/

In the next decade, the biggest evolution of Bitcoin is precisely "responding to change with invariance." The four-year cycle is giving way to capital flows such as ETFs, corporate and sovereign reserves, and bank credit, while digital credit and digital currency will grow layer upon layer on top of...

Forbes Special Report: Stablecoin cross-border payments are faster now, but not cheaper yet

Cross-border payments using stablecoins are rapidly expanding, bringing speed and accessibility, but due to insufficient institutional liquidity, they have not yet delivered on their promised cost savings. The technology has been validated, and regulations are improving, but the industry has not yet...

A valuation of 8 billion dollars, doubling in 8 months! What makes the crypto-friendly bank Erebor Bank stand out?

Erebor is a high-profile experiment taking place at the intersection of banking, cryptocurrency, and industrial policy.

340 billion valuation: Li Yanhong's largest IPO, a seat in Kunlunxin's shares is hard to come by

As a core asset in Baidu's AI landscape, Kunlun Chip is expected to exceed Baidu's market value after going public, becoming an important bargaining chip in its turnaround battle.

Stablecoins are the "royalists" of the crypto world: Open USD brings the old currency system into play

The emergence of Open USD has shifted the competition for stablecoins from the market struggle of crypto startups to a battle for infrastructure involving traditional finance, payment networks, technology platforms, and public chain ecosystems.

Cape Verde 2-3 Argentina: The Underdog Team That Stunned the World in Defeat

Cape Verde's run ended in a 3-2 defeat to Argentina, but their journey — three unbeaten draws, one heroic goalkeeper, and a fight that pushed the defending champions to the brink — is the kind of story markets recognize too: small caps can rattle blue chips long before anyone expects it.

Semiconductor stocks plummet, yet Anthropic wants to create a 2nm chip

Abandoning TSMC and teaming up with Samsung. Anthropic launches a self-developed 2nm chip program, challenging Nvidia and starting a battle to break through computing power costs.

Where is Zhao Changpeng's billion-dollar investment going? YZi Labs' investment landscape fully revealed

Zhao Changpeng's billion-dollar new "family office" YZi Labs investment landscape revealed: 70% of the funds are committed to the crypto ecosystem, while 30% are cross-industry bets on AI and biotechnology, launching a new capital experiment in the post-Binance era.

Ethereum Foundation Report: A Basic Guide to Ethereum for Governments and Financial Institutions

The Ethereum Foundation has released this non-technical introductory report aimed at government officials, central banks, regulators, and corporate decision-makers, explaining how Ethereum works, how it is governed, how it differs from other blockchains, and how institutions and governments are alre...

A pre-announced harvesting case: After the cryptocurrency price dropped by 99%, the public chain Saga exited to transform into AI

True failure often isn't a single price drop, but rather a pricing mechanism that repeatedly rewards those who tell stories while repeatedly punishing those who believe in the stories.

When American giants collectively "defect" from Chinese AI models

Coinbase CEO publicly stated: the company has fully switched its AI to a Chinese model, cutting expenses in half while usage has doubled. Snowflake and Lindy are also doing the same thing—an unnoticed "AI model migration wave" is happening.

BIS Report Compliance Observation: The Real Risks of Stablecoins, Not Just "Depegging"

The issue with stablecoins is not just whether their price will decouple, but whether they can be integrated into a recognizable, monitorable, accountable, and regulated financial system.

Portugal 2-1 Croatia: Ronaldo's 20-Year Knockout-Stage Drought Ends With a Debt Finally Collected

Portugal beat Croatia 2-1 in the 2026 global football championship's knockout rounds as Ronaldo scored his first-ever knockout-stage goal, Gonçalo Ramos struck a stoppage-time winner, and VAR ruled out a late equalizer for offside.

$10,000 in TRUMP Token vs. $10,000 in Nasdaq: The "Trump Trade" That Actually Worked in 2026

Morning Report | Vitalik outlines Ethereum's long-term roadmap, Lean Ethereum will become the third major iteration; SK Hynix seeks to attract more AI investors by listing in the U.S

July 5 Market Important Events Overview

The impact of OUSD on Circle, Tether, and Paxos: not a single negative factor, but a more complex reshaping of competition

OUSD will not be the last new competitor; Circle needs to respond more actively in terms of products, distribution, and ecosystem collaboration.

Li Feifei's latest long article: When video generation, robots, and NVIDIA all claim to be world models, we need a taxonomy

Language gives machines a way to talk about the world. The world model is the means by which machines ultimately understand, imagine, reason, and interact with it.

Blaming the desolation of the cryptocurrency world on the rise of AI is a form of intellectual laziness

The emergence of giants signifies a mature business model. Although it will reduce speculative space, there is also enough room for error, allowing for the continuous emergence of new forces.

Strategy Founder: The Next 10 Years of Bitcoin