Peter Schiff Slams Bitcoin “Fools,” Points Out Silver To Outperform BTC This Year

Bitcoin’s meteoric rise to fresh all-time highs has ignited a corporate buying frenzy, but not everyone is celebrating. Peter Schiff, a long-time critic of Bitcoin, has once again raised concerns about the growing number of companies turning to crypto. He argues that these firms lack solid business models and instead rely on speculative hype.

Schiff described the current rush into crypto as a cycle of “fools chasing other fools,” where each wave of buyers simply hopes to offload their holdings to the next group at higher prices.

While Bitcoin bulls celebrate a record-breaking year, Schiff urges investors to shift their attention to silver, a commodity he believes offers more sustainable growth.

This week alone, Bitcoin holdings by public companies soared past 850,000 coins. BlackRock and MicroStrategy combined now control nearly 6% of Bitcoin’s total supply.

Besides, corporate treasuries are increasing their Bitcoin exposure at a pace that surprises even seasoned investors. The enthusiasm is largely fueled by ETF inflows, institutional FOMO, and optimism over possible interest rate cuts.

However, Schiff believes these actions are misguided. He argues that such companies are taking advantage of retail investors who are willing to buy their stock at inflated prices.

Consequently, these firms are more focused on market hype than delivering actual value. Schiff warns that when the music stops, it is the latecomers who will bear the losses.

While Bitcoin has jumped 21.5% so far this year, silver has quietly outperformed, gaining around 25%. The iShares Silver Trust, a popular silver ETF, has rallied from under $26 to over $33 per ounce.

Moreover, in another context, Schiff contends that silver’s fundamentals remain far stronger than Bitcoin’s. He highlights that silver has industrial applications and limited downside risks. Bitcoin, on the other hand, still faces volatility concerns and could reverse sharply if market sentiment shifts.

Hence, Schiff rotating profits from Bitcoin into silver before the metal’s next significant rally. He suggests that macroeconomic uncertainties could spark renewed interest in precious metals, creating a tailwind for silver prices.

Despite Schiff’s warnings, the corporate crypto momentum continues to build globally.

The trend has also expanded beyond Bitcoin, with companies like GameSquare and SharpLink Gaming recently making multi-million dollar purchases of Ethereum, and firms like BIT Mining raising capital to invest in Solana.