Peter Schiff Slams El Salvador Bitcoin Strategy as Country’s Holdings Hit $635M ⋆ ZyCrypto

Bitcoin critic Peter Schiff has mocked El Salvador’s Bitcoin strategy, saying that, unlike stipulated under the 2021 law, vendors in the country do not accept BTC payments. Schiff’s statement came amid a surge in the country’s Bitcoin holdings to over 7,500 coins, amid its commitment to buy 1 BTC every day.

Schiff Mocks El Salvador’s Bitcoin Law

In an X post, Schiff stated that he met with Anthony Pompliano at a restaurant in El Salvador and asked if they could make their payment in BTC. However, their payment request was denied, which was odd considering Bitcoin is legal tender in the country.

“We grabbed dinner at a local restaurant. I asked the waitress if we could pay in Bitcoin, and she said no,” he said.

Despite the recent drop in Bitcoin price, El Salvador has continued to buy 1 Bitcoin every day. It now holds 7,547 BTC worth around $650 million at the current prices. However, the country appears to be diversifying its holdings after it also recently made a gold purchase. 

In an X post, the central bank of El Salvador revealed that it had purchased $50 million worth of gold for its reserves. The recent purchase involved 9,298 troy ounces of the precious metal, bringing its total gold holdings to 67,403 ounces, worth around $360 million at current prices.

Schiff Advocates For Gold as Bitcoin Lags

Schiff, who has long been a proponent of gold and a critic of Bitcoin, had earlier said that Bitcoin’s value relative to gold has been in sharp decline. He noted that after gold’s meteoric rise to record highs, BTC was worth only 15.5 ounces of gold. This was a notable 57% drop over five years.

“Despite all the hype and support from Wall Street and the Trump administration, most people who now own Bitcoin would have been better off buying gold and silver instead,” Schiff added.

His criticism of Bitcoin also extends to crypto stocks, especially MicroStrategy, which has been aggressively growing its Bitcoin reserves despite falling prices. According to Schiff, MicroStrategy’s Executive Chairman, Michael Saylor, has seen only a less than 11% unrealized gain on Bitcoin since he started buying five years ago.