Peter Schiff told Michael Saylor that the US government should borrow $4.3B to buy Bitcoin.

Prominent economist and outspoken Bitcoin skeptic Peter Schiff took to X on October 9 to weigh in on the $4.3 billion sale of 69,370 Bitcoins.

His post sparked heated responses from Bitcoin fans and critics alike, reigniting debates over the value of the virtual asset.

Silk road bitcoin up

Schiff's Twitter has cleared the way for the U.S. government to sell seized bitcoins if the Silk Road marketplace is shut down following a Supreme Court ruling. Therefore, the government announced its intention to investigate the coins that were detained in legal proceedings.

MicroStrategy CEO Michael Saylor, co-founder of Echelon Wealth, known for his gold picks, seems to have sarcastically said he had to borrow $4.3 billion to buy bitcoin.

“Every once in a while, the government does something smart,” he quipped, seemingly a sly dig at Saylor's bitcoin-heavy investment strategy.

Since 2020, Saylor has led MicroStrategy to acquire billions in Bitcoin, a move Schiff has previously criticized as a risky gamble. On September 20, the company raised more than $1 billion and used some of the proceeds to buy 7,420 BTC. That acquisition brought MicroStrategy's total haul to 252,220 coins, which is currently worth $16 billion.

The radio personality's recent comments have drawn responses from both sides of the Bitcoin debate, with cryptocurrency advocates quick to challenge his comments.

One user, Henry Scavacchini, highlighted the six main characteristics of Bitcoin – durability, portability, separability, fungibility, scarcity and acceptance. They also pointed out the seventh: immutability, which is unique to blockchain-based assets. This sparked further discussion, with others joining in to defend Bitcoin as “hard money”.

Schiff Adamant on gold

But, even as the wagon turns, Schiff stands firm, saying, “He's missing the most important thing.” [property]. True value.

The dismissal of Bitcoin's price has caused it to pull back further, with users like Tommy Carver noting that the market consensus is that Bitcoin is currently worth more than $62,000. Another user added that the value is subjective and determined by the utility of the property.

This online exchange between a veteran stockbroker and a Bitcoin fan highlights the long-standing ideological divide between traditional gold bugs and Bitcoin's elite.

Schiff has repeatedly criticized Bitcoin, arguing that gold has no real value. He says the recent obsession with Bitcoin is causing investors to miss out on gold's record-breaking performance.

Additionally, he said, the cryptocurrency is helping to cover up policy mistakes made by the US Federal Reserve, mistakes that could have been noticed if more attention had been paid to the performance of the gold market.