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PeterSchiff Explain How the Grayscale Trust Helps Fuel the Bitcoin Bubble
Summary: Euro Pacific Capital CEO and Bitcoin opponent Peter Schiff just tweeted to explain how the Grayscale Bitcoin Trust(GBTC) helps fuel the Bitcoin bubble. First Grayscale spends lots of money on CNBC running non-stop ads pumping Bitcoin to investors. CNBC then returns the favor by constantly featuring pro-Bitcoin guests on air, who make pie-in-the-sky price forecasts. With Bitcoin's biggest ...
Euro Pacific Capital CEO and Bitcoin opponent Peter Schiff just tweeted to explain how the Grayscale Bitcoin Trust(GBTC) helps fuel the Bitcoin bubble. First Grayscale spends lots of money on CNBC running non-stop ads pumping Bitcoin to investors. CNBC then returns the favor by constantly featuring pro-Bitcoin guests on air, who make pie-in-the-sky price forecasts. With Bitcoin's biggest buyer sidelined, the price of Bitcoin will fall even faster, causing even more GBTC holders to want out. If Grayscale wants to close that gap it will have to sell Bitcoin and buy back shares, pushing Bitcoin even lower. But reducing AUM also lowers the management fees. So GBTC may not sell Bitcoin to close the discount, but only sell what is needed to cover the steep 2% annual management fee. Those sales alone could result in Grayscale going from the biggest Bitcoin buyer to the biggest seller.
By Amy Liu
Tags: Bitcoin,Bubble,Grayscale,PeterSchiff
Link: PeterSchiff Explain How the Grayscale Trust Helps Fuel the Bitcoin Bubble [Copy]
