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The well-known Bitcoin critic and gold advocate, Peter Schiff, states that The Grayscale Bitcoin trust was one of the main reasons the first cryptocurrency rallied to almost $70K. He also added about a particular scheme used by the institutional investor.
It can be seen that Grayscale was able to raise more capital that it successfully used to buy as much Bitcoin on the market as possible. But, unfortunately this played a cruel joke on GBTC holders. And Grayscale’s discount on NAV has been recently crashing to unseen values, reaching 43% at the bottom.
Mr. Schiff also noted that “It advertised on CNBC to get retail investors to pay huge premiums to NAV. Then it issued new shares to institutions at NAV, using the proceeds to buy more Bitcoin, pushing the price even higher.”
In a recent event of Dubai Multi Commodities Centre (DMCC,) the global financial expert, PeterSchiff, shared valuable insights on the ever-changing nature of crypto, blockchain and precious metals trade in the current market conditions.
“Bitcoin can’t do Anything”: Peter Schiff
He wrote that “Gold has value, whether you want to believe that or not. The things that gold can do are valuable. Bitcoin can’t do anything. All you can do with Bitcoin is transfer it to some else.”
Mr. Schiff mentioned the reason why he doesn’t own any Bitcoin and said “I know more about Bitcoin than just about anyone. That’s why I don’t own any Bitcoin. My bank did nothing wrong, and no customers lost any money. I can’t help what the media and governments decide to do.”
He also pointed out the returns from Bitcoin in the recent ten years that according to him are irrelevant to most people who bought it over the past two years. “Even when Bitcoin falls back below $1,000, down better than 98% from its high, you will still be able to point to its long-term superior returns. What difference will that make?” he added.
He also clarified that “Hard to say. Some are both. But since my most popular tweets are anti-Bitcoin, I’d guess the former.”
Moreover, he also talked about that there is plenty of data that shows the economy is already in a recession. He said, “It’s actually a stealth recession because nobody wants to acknowledge that it’s actually here. That’s also throwing everybody off. Remember, when we did have two negative quarters of GDP, they still denied that we were in a recession.”
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
