- Peter Schiff concedes Bitcoin has a use case—as a hedge against Saylor’s Bitcoin-heavy strategy.
- Short-seller Jim Chanos holds Bitcoin to offset risk from his bearish position on MSTR, Schiff said.
- Despite Bitcoin’s price rally, Schiff continues to dismiss it as hype-driven and unsound.
Peter Schiff, one of Bitcoin’s most relentless critics and a staunch gold advocate, surprised crypto enthusiasts by admitting that Bitcoin has a valid use case—just not the kind its supporters might hope for.
In a recent post on X, Schiff pointed out that famed short-seller Jim Chanos is using Bitcoin to hedge his short position against Strategy, the largest corporate holder of Bitcoin.
Schiff Explains Chanos’s Bitcoin Hedge Against Saylor’s Strategy
Schiff noted the irony in this development, adding that Saylor, through his aggressive Bitcoin strategy, has inadvertently created a practical use for Bitcoin, even if it’s one born out of skepticism.
Jim Chanos, known for his bearish takes on overhyped assets, is betting that MicroStrategy’s stock will decline—largely due to its massive exposure to Bitcoin.
Related: Bitcoin (BTC) Price Prediction for May 16
However, to protect himself in case the stock rises due to a surge in Bitcoin’s price, he purchased BTC as a hedge. In Schiff’s eyes, this represents a rare, real-world function for Bitcoin: as a tool to manage risk associated with speculative Bitcoin-related stocks like Strategy.
Criticism Persists Despite Bitcoin Rally and Positive Metrics
Bitcoin soared past $100,000 recently, gaining almost 19% in the past 30 days. However, Schiff remains unimpressed, noting that Bitcoin’s price movements remain closely tied to the Nasdaq, undermining the narrative that it has “decoupled” from traditional risk assets.
For Schiff, the current Bitcoin rally is another hype-driven cycle, not a sign of fundamental strength. He is also critical of the growing trend of Bitcoin proxy investments.
Related: Fidelity and Grayscale Lead Outflows as Bitcoin and Ethereum ETFs See Red on May 14
On the other hand, analyst Ali Martinez identified $101,600 as a key support level, while blockchain intelligence firm Santiment reported an average of 309,000 new Bitcoin wallets being created daily over the past month—far outpacing Ethereum, XRP, and Tether.
Robert Kiyosaki Champions Bitcoin, Targets $200K Plus
Strong support for Bitcoin continues to come from Robert Kiyosaki, author of “Rich Dad, Poor Dad.”
Kiyosaki criticized central banking as a form of socialist price control that erodes freedom and promotes economic dishonesty. He encouraged people to opt out of “fake money” and adopt decentralized alternatives.
According to the author, Bitcoin has made it very easy for people to become rich. However, the main reason poor people remain poor is due to “FOMM: Fear of Making Mistakes,” explained Kiyosaki.
“If history is any indicator, the FOMO crowd investing in Bitcoin will accelerate into generational wealth,”
He also indicated that Bitcoin will hit $200,000 and higher based on his expectations from the world’s largest cryptocurrency.
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