The rapid accumulation of Bitcoin by major corporations is drawing sharp criticism from some of the most vocal skeptics in the financial world. Peter Schiff, renowned economist and gold advocate, has sounded the alarm on what he describes as an unsustainable, speculative frenzy fueled by the recent corporate shift toward Bitcoin as a treasury asset.
On July 14, Schiff took to social media platform X to express his concerns, warning that the current Bitcoin rally is not a reflection of grassroots adoption or real-world utility, but rather a speculative bubble driven by corporations hoarding Bitcoin in hopes of engineering future demand. According to Schiff, “Bitcoin demand has shifted to corporate Bitcoin treasuries and speculators trying to front-run that buying.”
In his scathing critique, Schiff argued that the strategy resembles a Ponzi scheme built atop a pyramid structure. “This isn’t about expanding Bitcoin adoption—it’s about concentrated speculative madness that undermines Bitcoin’s fundamentals,” he declared. His commentary drew support from fellow economist Steve Hanke, a professor of applied economics at Johns Hopkins University, who echoed the sentiment, writing, “Companies swapping productive investment for Bitcoin treasuries are playing Russian roulette. Bitcoin and Ethereum treasuries lack a business model because BTC has no intrinsic value.”
Schiff directed specific criticism at Michael Saylor, Executive Chairman and co-founder of MicroStrategy (Nasdaq: MSTR), who is among the most prominent corporate advocates of Bitcoin. Responding to both Saylor and journalist Laura Shin, Schiff warned, “It only goes up until the bubble bursts. Then it crashes. That’s how pyramid schemes work. Bitcoin is based on the greater fool theory.” He added, “Saylor might become the greatest fool of all, but this momentum won’t last forever. It never does. Bitcoin will not be the exception.”
The core of Schiff and Hanke’s argument is that corporate treasury strategies involving Bitcoin are prioritizing hype over fundamentals. They warn that this artificial demand inflates Bitcoin’s price while masking underlying weaknesses, leaving investors exposed when sentiment shifts.
In contrast, Schiff pointed to silver as a more grounded and sustainable asset. On the same day as his Bitcoin criticism, he highlighted that silver had quietly surged past $39, its highest level since February 2012. “The silver train keeps quietly rolling,” Schiff wrote. “Silver’s rise is far more significant to the real world than Bitcoin’s latest high. Industries actually need silver and now must pay more for it. No one needs Bitcoin.”
However, crypto advocates strongly reject this narrative. Supporters argue that Bitcoin’s fixed supply, borderless transferability, and resistance to confiscation or fiat debasement make it uniquely valuable in today’s financial landscape. Unlike silver or gold, Bitcoin cannot be inflated or physically seized, giving it an edge in uncertain economic environments. Proponents often describe Bitcoin as “digital gold,” combining scarcity with programmability, and emphasize its open, decentralized nature as a long-term value proposition far beyond industrial utility.
Despite the fierce debate, one thing is clear: Bitcoin’s evolving role in corporate finance continues to polarize experts and investors alike. Whether it proves to be a revolutionary hedge or a speculative trap remains a central question as adoption deepens and markets respond.
As the lines between speculation and strategy blur, the financial world watches closely—waiting to see if Bitcoin’s corporate treasury boom is a sign of maturation or the precursor to an inevitable shakeout.
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