Peter Schiff calls again to the bitcoin

Economist Peter Schiff, who is skeptical of cryptocurrencies, was guaranteed against buying shares in companies involved in bitcoins.

Schiff decided to warn investors due to the situation in the securities market of the American chain of Gamestop stores, which announced the BTC purchase plan. After the Board of Directors of the company approved the Bitcoin investment strategy, the enterprise’s assets went up by 21%, however, the publication of the press release on the release of convertible bonds for the acquisition of coins caused the maintenance of the company’s shares that collapsed by more than 29%.

In the Gamestop shares market collapse. They fell in price by 22% during the day, and their price fell by 26% of the peak yesterday. Supplying bitcoins on companies are a bad investment strategy, ”said Shiff.

Peter believes that Gamestop securities have risen in price thanks to fools who succumbed to excitement due to news about investment in bitcoins. Smart investors, on the contrary, realize that in the long run, the business model, which implies the purchase of digital assets, will fail, so they get rid of the company’s securities.

According to the shares of American and European enterprises under the pseudonym M … X Dividend Growth, the GameStop management paid for deciding to take a chance at someone else’s expense. Obviously, he has in mind the scheme for attracting funding for the purchase of BTC, which provides for the sale of convertible bonds. Most likely, shareholders were confused by the fact that the company wanted to receive funding from the side instead of spending $ 4.7 billion stored on the balance sheet of excess funds.

The fear of the uncertainty of Gamestop workers in the effectiveness of the developed tactics is also caused by their recognition in the report submitted by the regulator:

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