A popular Bitcoin (BTC) critic, Peter Schiff, recently shared his take on the top coin’s supply and demand dynamics. In his post, the anti-BTC businessman pointed out that Bitcoin has a limited supply.
He went on to highlight a trend of “HODLing” amongst BTC investors, which he believes would impact the coin’s price. Peter Schiff noted that the price will increase if these investors continue to hold on to the flagship cryptocurrency while others seek to buy.
It is worth noting that Bitcoin’s total supply is 21 million, out of which 19.5 million are already in circulation. This leaves miners and new buyers with only about 1.5 million units of the crypto asset.
These buyers could eventually get more BTC in the open market, driving a shortage. In the Bitcoin critic’s opinion, when the supply later runs out, and hodlers decide to sell, there may not be a matching demand. If this scenario plays out, it might cause a setback for the coin’s price.
One company that fits the first description of buying and HODLing is business intelligence and software company MicroStrategy. Peter Schiff’s statement could be a well-thought-out jab at the firm.
This Michael Saylor-led firm launched a Bitcoin accumulation strategy in 2020 during the global pandemic. In the last four years, MicroStrategy has consistently acquired Bitcoin despite harsh market conditions.
The firm acquired 11,931 BTC in June, bolstering its holding to 226,331 Bitcoins. Its last recorded purchase was in August when the firm added 169 BTC to its holding. As of August 1, 2024, MicroStrategy boasted a hefty holding of 226,500 Bitcoins.
With Bitcoin’s price now at $57,528.99, this holding is worth slightly above $13 billion. Amazingly, this firm has yet to sell any of its Bitcoin for profit in its four years of accumulating the firstborn digital currency.
Several market observers have sought clarification on MicroStrategy’s resolution towards Bitcoin. This became necessary as many purchases were achieved with debt financing and opportunistic buying.
Japanese financial leader Metaplanet has followed in MicroStrategy’s footsteps, acquiring Bitcoin at every opportunity. Unlike the business intelligence firm that launched its Bitcoin strategy four years ago, Metaplanet is only four months into the game.
Since May, the Asian finance firm has been accumulating BTC. Earlier today, Metaplanet bought 38 BTC worth 300 million Japanese Yen. The recent purchase took its total Bitcoin holdings to more than 398.8 units.
Peter Schiff: Battle Between Gold And Bitcoin
Meanwhile, Schiff’s pessimistic statements on Bitcoin are usually geared towards improving the outlook of gold. He believes the precious metal asset is better than BTC as a store of value and hedge against inflation.
When Bitcoin struggled in April, Schiff highlighted the awesome performance of gold, which had reached a new record then. Sadly, Bitcoin continues to win the comparison competition, making investors take Schiff’s predictions and criticism with levity.
Then again, some experts believe that gold demonstrates stronger characteristics than Bitcoin despite global economic uncertainty. Overall, the Bitcoin versus Gold comparison has gained traction recently, and no winner is in sight yet.
