"If MicroStrategy crashes, it will be a bloodbath"

As MSTR stock soars, a Bitcoin critic warns investors. Why Peter Schiff predicts MicroStrategy's demise.

American economist and gold enthusiast Peter Schiff is not impressed with the recent strong performance of MicroStrategy stock. He is now warning investors not to put money into shares of the "Bitcoin development firm" by Michael Saylor.

In a post on X, the open Bitcoin skeptic writes: "MSTR is the most overvalued stock in the MSCI World Index." MicroStrategy is one of 1,410 companies in this popular index among investors.

The software company currently owns 244,800 BTC, worth $16.4 billion. With a return of nearly 220 percent since the beginning of this year, MicroStrategy's stock is not only outperforming the big tech companies, but Bitcoin itself has posted lower percentage gains.

Still, the casual name similarity between Saylor and Schiff has not resulted in a friendship. Schiff on several occasions accused Saylor of using MicroStrategy to manipulate the Bitcoin price and warned of losses.

Now Schiff expresses himself even more strongly: "When [the MSTR stock] finally crashes, a true bloodbath will follow." MicroStrategy's market value has grown from $1.5 billion to more than $40 billion in four years.

Meanwhile, MicroStrategy CEO Saylor soberly explains his company's success with Bitcoin: "This is not a 'money glitch,' but a digital transformation of capital markets."

Whether Saylor can still convince Peter Schiff? An early opponent of Bitcoin, Schiff compared the crypto currency to tulip mania back in November 2013. At the time, the BTC exchange rate was $355.

Schiff maintains his anti-attitude because, unlike gold, he believes Bitcoin is not used in any industry and does not physically exist: "Bitcoin is no more digital gold than a picture of a hamburger is digital food."