Peter Schiff Warns: Bitcoin ETFs Face Major Outflows + Altcoin Risks Ahead

"The crypto donors who have backed Trump and put him in the White House, they may say, "Look, you know, Donald, you got to step up here."

"I don't think it's a viable business. I think it's going to go bankrupt."

"So, I think that all that Bitcoin is going to get liquidated and and so the people who didn't want to sell their Bitcoin at 100,000, 110,000, 120,000 are going to be forced to sell it at much lower prices. you know, maybe 50,000 or 40,000 or who the hell knows where where it's going to go in this initial, you know, could go lower than that."

"And in fact, a lot of the money came out of gold ETFs and came out of gold stocks to to pile into these Bitcoin ETFs. And I think that as Bitcoin really starts to break down, a lot of those, you know, Johnny come late, uh, who jumped on a bandwagon, when they're down 20, 30, 40%. You know, I think these guys are going to cut their losses. They're going to say, "You know what? It didn't work out. Let me take my chips off the table."

"And then I think all these uh uh Bitcoin treasury companies that have sprung up over the past year that have been buying Bitcoin and borrowing money and issuing stock to buy Bitcoin, that whole business model is going to collapse. So that new demand is going to go away. But a lot of those companies may have to start selling the Bitcoin that they bought. And in fact, Micro Strategy, I don't know where the the pain is where they have to start selling. Eventually, they will."

"And the most significant thing is that Micro Strategy is going to stop buying. And when they can no longer buy Bitcoin because they can no longer sell stock at a premium because they're going to be trading at a discount to their NAV, the whole investment case for a micro strategy falls apart because they can no longer generate, you know, a Bitcoin yield, which was a deceptive term anyway because it's not really a yield, but they won't be able to do it when it's at a a discount."

"Bitcoin was about one of the worst things they could have done with the money. But what makes it even worse is that Sailor can't sell. If Strategy had had spent 57 billion buying gold, he could realize that profit if he wanted, he could sell. But there's no way they could realize any profit on Bitcoin because if they tried to sell, the market would just completely implode and there's no way he could get out even close to what he what what he paid."

"And so maybe they decide that, okay, let's fill up, let's take advantage of this decline. We're going to buy the dip and we're going to spend, you know, all this taxpayer money buying Bitcoin this to fill up the strategic reserve. In effect, that would be a bailout, a Bitcoin bailout where taxpayers would bail out Bitcoin speculators."

"I think that all these Bitcoin treasury companies are going to go out of business including Strategy. I mean, Strategy might go out of business last but a lot of the copycat companies are going to go out of business."

"There's no way that gold's going to zero. It's just I mean there's no precedent for that ever happening through all of recorded history."

"This business model can only continue so long as the stock is trading at a premium. And once it's trading at a discount, then it no longer has the ability to generate this yield. And so it the very foundation of its existence, you know, disappears. If Micro Strategy can't generate a Bitcoin yield, then what's the point of owning it? Just own Bitcoin. Why are you buying strategy?"

"But the problem is they've issued a lot of these convertible debt where they've promised to pay dividends, but they don't really have to. If you look at the language on the convertibles, strategy has to declare a dividend. And if they don't declare it, you get nothing. And I think they're going to stop the they're not going to declare any dividends. They're not going to have any way to pay it. They're not going to want to dilute the stock that massively. And so they're just going to stop all payments on all the preferreds, which is going to destroy the demand for those things."

"And strategy does have a lot of convertibles that are going to mature and they're going to have to pay billions and billions of dollars of cash starting I don't know what if it's 2028 or when the first ones start rolling over but 2028 2029 2030 they're going to have to come up with billions of dollars. Well, where are they going to get that money? They they don't have any money. All they have is Bitcoin and that Bitcoin is going to keep losing value. So they're they're going to have to sell the Bitcoin eventually to repay the debt. And so, you know, that's the Ponzi nature of this of this thing."

"So I think the demand for gold over the next several years is going to really accelerate and what it really is, is a rotation out of US dollars and out of US treasuries. That's why foreign central banks are buying gold. They they don't trust the dollar. They don't trust treasuries given the exploding debt and the Fed monetization and all the things that that we're doing destroy confidence."

"So, you know, the dollar is doomed. It's, you know, it's everybody's trying to get out of the dollar and the only way to get out of the dollar is to get into gold and that that's what's going on."

"The reason they're buying all this gold is because they know the Fed is full of it. Inflation is going to be a lot higher and so people don't want to lose that purchasing power and so they're getting out and they're they're buying gold and that that's how they can protect themselves."

"And I think their goal really is to create the world's dominant currency. I think they want to supplant the US dollar as the main uh currency of the world. The best way to do that is to own enough gold where they can now back their currency by gold and make it convertible at some fixed rate with gold."

"So the rest of the world wins. America, of course, is the biggest loser because we have relied on the dollar's reserve status as a crutch. It's the reason that we can live beyond our means. It's the reason that we can consume without having to do all the hard work of producing. It's the reason that we could just borrow without having to save."

"And that's why, you know, I've invested my clients assets abroad so they can benefit from the appreciation of foreign assets, foreign currencies. And they can, you know, they could ride that wave, right? Foreigners getting richer. Well, you know, if you own foreign assets, then you get richer, too, because your assets will rise in value compared to US dollar denominated assets that are sinking in value."