Peter Schiff warns of investments in companies that only hold Bitcoin

The economist and gold supporter Peter Schiff has renewed his criticism of the cryptom market, but this time his focus is not only on Bitcoin, but on the growing trend of companies, whose business models are completely about possession of the digital currency.

Schiff put the Logic behind the purchase of stocks of public companies that do not produce products, do not offer services and do not achieve any income beyond their Bitcoin exposure. “Why insert another level between himself and the asset?” He argued and pointed out that these companies essentially act as Bitcoin packers, with all risks of a traditional company-and without its benefits.

The criticism comes at a time when more and more companies are changing their financial strategies and making massive Bitcoin allocations. With more than 568,000 BTC, Strategy is a leader in its balance sheet – currently with a value of over $ 120 billion.

Others, including Tesla, Block, Coinbase and the Japanese company MetAplanet, followed this example. Some, like ClePark and Hut 8, bind their stocks to the mining at least. But many, according to Schiff, simply ride on the Bitcoin price wave without offering something new.

In his view, these shares reinforce volatility. They not only reflect Bitcoin's price fluctuations, but also pose risks such as decisions of management, compliance problems and market pressure-all factors that can actually seek the value that investors are actually looking for: engagement in Bitcoin.

Schiff's attitude is clear: Anyone who is convinced of BTC should buy it directly. Investments beyond companies that do not offer innovations or surgical services beyond the maintenance of assets are speculations with additional steps – and additional risk.