Haunted by Past Elon Musk Predictions, Gold Bug Peter Schiff Tears Into Tesla's BTC Acquisition

After previously claiming that Elon Musk was too smart to buy bitcoin, Euro Pacific Capital CEO Peter Schiff is reacting angrily to reports that Tesla has acquired the cryptocurrency. In a series of tweets on February 8, Schiff now claims that Musk has no interest in bitcoin’s store of value credentials but is only interested in pumping the crypto.

BTC Bias Allegations

In its filing with the U.S. Securities and Exchange Commission (SEC), Tesla says it decided to acquire bitcoin because it fits with the company’s updated investment policy. According to the company, this new policy, which provides Tesla with the flexibility to diversify and maximise returns on idle cash, authorizes the company to buy gold bullion as well.

However, in one of his tweets, Schiff appears to take aim at Musk and Tesla for choosing to announce the BTC acquisition while not mentioning anything about gold. Schiff says:

Though Tesla’s SEC filing also authorizes the purchase of gold, no purchases were disclosed, and my guess is that none are actually contemplated. Elon Musk has no interest in a store of value or an inflation hedge. His goal is to pump more air into the bitcoin and Tesla bubbles.

Immediately following Tesla’s acquisition, BTC’s value spiked with the top crypto setting another all-time high (ATH) of just above $48,000. After Tesla’s acquisition, some bitcoiners now predict the crypto asset will reach $100,000 by year-end as more large institutions join the buying frenzy.

BTC Not Crashing

Meanwhile, Schiff, who has predicted BTC’s crash on numerous occasions, also attacks the mainstream financial media for “doing everything it can to promote” bitcoin at the expense of gold. In particular, the gold bug is unhappy with the U.S. network CNBC’s coverage of Tesla’s bitcoin acquisition. Schiff says:

As expected, CNBC is providing non-stop coverage of Tesla’s bitcoin buy, with one guest after another, most with a vested interest in promoting bitcoin, praising the decision. No guests have really criticized the decision, to the delight of Grayscale, CNBC’s biggest advertiser.

In the meantime, on Twitter, user Peter Elon is quick to remind Schiff that in just under 48 hours after the announcement, Tesla’s BTC investment is already $150 million up. Another user, Anthony Kloda explains why Schiff is rattled. He says:

“Peter is rattled because the bitcoin narrative currently is digital gold and he’s afraid of an institutional shift from physical gold to bitcoin driving down gold leadership position as the dominant inflation hedge. In my opinion, there is more than enough room for both.”