American financial firm Square recently created controversy by buying $ 50 million worth of Bitcoin. Many analysts commented on Bitcoin, whose price rose after Square’s move. The discussion that took place between Peter Schiff and Willy Woo on Twitter came to the fore.
Famous Europac CEO Peter Schiff, known as a gold investor, made a controversial comment after he learned that the financial firm Square bought $ 50 million worth of Bitcoin. His comment on Twitter drew many reactions. Among those who reacted is famous analyst Willy Woo.
Peter Schiff said in his tweet of October 8, 2020:
“Bitcoin has increased 4% following the news that Square has invested $ 50 million (1% of total assets) in #Bitcoin. But this purchase had already taken place. Speculators believe the announcement will attract new buyers. The real news is that Square’s purchase cannot push Bitcoin above 2019’s highs. ”
Reactions to Schiff, who argued that there was speculation on the bitcoin price, were quick. Willy Woo replied to Schiff on October 9:
“The real news is that Bitcoin swallows Square’s $ 50 million worth of Bitcoin purchases without even affecting the price, thanks to its high liquidity. The same can be said for MicroStrategy’s $ 425 million acquisition. ”
Bitcoin is more liquid than gold, according to Woo
Willy Woo went on to explain that the liquidity that Bitcoin has is already sufficient for incoming purchases. Woo reported that Bitcoin is trading at a similar volume with LBMA, one of the largest gold markets. According to him, BTC performs much better per dollar invested and is more liquid than gold. Finally, Woo said in his tweet:
“A $ 50 million buy-and-hold move to be seen in Bitcoin could raise the organic valuation price of BTC by roughly $ 50.”
Peter Schiff has not yet responded to Woo’s comments.