Peter Schiff, a long-time critic of Bitcoin, appears to be finding vindication in the cryptocurrency’s recent performance, as its value declines even as gold rallies. Schiff has repeatedly warned against Bitcoin’s speculative nature, characterizing it as a “huge casino” and a “Ponzi scheme,” even engaging in a public debate with Binance founder Changpeng “CZ” Zhao in December 2025 where he doubled down on these claims.
Schiff’s criticisms have focused heavily on Strategy (MSTR) and its chairman, Michael Saylor, whose strategy of accumulating Bitcoin and financing it with debt has drawn particular ire. In late December 2025, Schiff accused Saylor of running a fraudulent business model, alleging that Strategy is forced to sell company stock to cover interest and dividend obligations rather than to purchase more Bitcoin. He likened the company’s actions to a Ponzi scheme, calling Saylor “the biggest con man on Wall Street.”
According to Schiff, Strategy’s reliance on issuing preferred shares at 8-10% interest rates to maintain dividend payments is unsustainable without continued Bitcoin sales. He argues that this cycle demonstrates the inherent instability of the company’s Bitcoin-backed financial structure. As of December 2025, Strategy held approximately 649,870 BTC, valued at over $48.3 billion, a significant increase from the roughly 500,000 BTC held in January 2025.
While Schiff remains steadfast in his preference for gold, citing its intrinsic value and industrial utility, he surprisingly agreed with Saylor’s assessment of Bitcoin’s value, albeit sarcastically, highlighting the ongoing tension between traditional gold advocates and cryptocurrency enthusiasts. He has also noted that Bitcoin’s purchasing power in terms of gold has diminished, with Bitcoin now buying 40% fewer ounces of gold than it did four years ago.
Schiff’s commentary comes as Bitcoin faces increased scrutiny and market volatility. He has previously questioned Bitcoin’s long-term viability, particularly in comparison to tokenized gold, arguing that tokenized gold represents actual ownership of a physical asset, unlike Bitcoin. Strategy did not respond to a request for comment from Benzinga regarding Schiff’s accusations.
