The former CEO MicroStrategy Michael Saylor and CNBC have come under fire from a gold bug for promoting Bitcoin, with Schiff accusing them of pumping the first cryptocurrency.
The SEC is fining @KimKardashian $1.2 million for pumping #crypto. What about the real pumpers? @Saylor had much more to gain pumping crypto than Kim. Or @CNBC paid millions for ads by crypto companies, then pumping #Bitcoin non-stop while providing industry pumpers with airtime?
— Peter Schiff (@PeterSchiff) October 3, 2022
Investors note that the US Securities and Exchange Commission (SEC) recently fined Kim Kardashian for illegally promoting the EthereumMax altcoin (EMAX).
In Schiff’s view, regulators should focus on entirely different influencers.
«The SEC fined Kardashian $1.2 million for pumping cryptocurrency. What about real “pumpers”? Saylor stood to gain far more from pumping crypto than Kim. Or CNBC, which was paid millions for advertising crypto companies? And then he pumped Bitcoin nonstop, giving industry players airtime», — Schiff wrote.
Saylor countered that Bitcoin is a commodity, not a security, and that its promotion is as legal as promoting “steel, aluminium, concrete, glass, or granite”.
#Bitcoin is a commodity, not a security. Advocating a commodity is similar to promoting steel, aluminum, concrete, glass, or granite. The BTC network is an open protocol, offering utilitarian benefits similar to roads, rails, radio, telephone, television, the Internet, or english.
— Michael Saylor⚡️ (@saylor) October 3, 2022
«The BTC network is an open protocol, offering utilitarian benefits, similar to highways, railways, radio, telephone, television, the Internet, or the English language», — added he.
His view was supported by Blockstream co-founder and CEO Adam Back. He noted that the Kardashian-endorsed token was deemed a security by regulators under the Howey test.
«Bitcoin is like digital gold, not a security. Saylor can talk about BTC the same way you have talked about physical gold for decades», — said the critic.
#Bitcoin is like digital gold, not a security. @saylor can talk about BTC, same as you’ve been talking about gold for decades. Notice the Kardashian touted token is considered by regulators as a security, where the typical test in the US at least, is the howey test.
— Adam Back (@adam3us) October 4, 2022
Schiff questioned the regulators’ classification of the first cryptocurrency, saying Bitcoin “does not possess a single characteristic of a real commodity”.
As the discussion drew to a close, the investor returned to criticizing the first cryptocurrency:
«Markets are starting to price in the Fed pivot, and Bitcoin can’t even hold above $20,000. By contrast, gold rose 6%, silver 15%, and the VanEck Junior Gold Miners ETF up 24%. Bitcoin is done. It’s not an inflation hedge and won’t rally with gold when the Fed folds»,
The markets are now starting to price in the #Fed pivot and #Bitcoin can’t even hold a rally above $20k. In contrast, #gold is up 6%, #silver is up 15%, and the $GDXJ is up 24%. Bitcoin is done. It’s not an #inflation hedge and won’t rally with gold when the #Fed folds.
— Peter Schiff (@PeterSchiff) October 4, 2022
Earlier in August, the investor said that Bitcoin could fall to around the $10,000 mark, repeating his May forecast.
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