Renowned economist Peter Schiff has criticized GameStop Corp.’s (NYSE:GME) Bitcoin investment strategy as shares plummeted 22% on Thursday. The video game retailer had previously announced its intention to adopt Bitcoin as a treasury reserve asset, but Schiff described it as a “Hail Mary” play.
GameStop’s decision to invest in Bitcoin was seen as a surprise move, with the company announcing that it would use its new stash worth over $43 billion to fund purchases. However, this announcement led many investors to believe that the strategy could be dilutive in the long run, causing the stock price to drop significantly.
Schiff, who has previously been critical of Bitcoin, took to social media to express his opinion on the matter. “Now that all the fools have already rushed in, smarter investors are selling,” he said. The economist described individuals who fell for the hype as “fools” and argued that those who were more cautious were exiting the market due to a lack of viability in Bitcoin’s long-term business model.
This criticism comes at a time when many investors are eager to get in on the cryptocurrency market, but Schiff’s comments suggest that he believes there is little value in investing in Bitcoin as a long-term strategy. As shares continued to fall, it appears that Schiff’s warnings may have had some effect, with many investors taking a step back and reevaluating their investment strategies.
Source: https://finance.yahoo.com/news/peter-schiff-slams-gamestops-bitcoin-033015475.html