Peter Schiff Admits Bitcoin Has a Use Case—Hedging Against MSTR Shorts

Longtime Bitcoin critic Peter Schiff has made a rare concession, admitting that the leading cryptocurrency may have a legitimate use case after all. In a recent statement, Schiff—known for his relentless opposition to Bitcoin—sarcastically acknowledged, “I’ve often said there’s no actual use case for Bitcoin. It turns out I was wrong.”

The unexpected remark was triggered by an investment strategy involving Bitcoin and MicroStrategy (MSTR), pioneered by famed short-seller Jim Chanos. According to CNBC, Chanos is using Bitcoin as a hedge against his short position in MSTR, the publicly traded firm led by Bitcoin advocate Michael Saylor. Schiff credits Saylor for introducing what he now jokingly calls a valid reason to own Bitcoin.

Chanos, known for shorting overhyped or structurally weak companies, sees MSTR as a proxy for Bitcoin with additional risk. Critics argue that investors are paying a premium—around $3 per share—for just $1 worth of Bitcoin exposure. Chanos contends that such a pricing model is unsustainable, though MicroStrategy remains bullish, projecting a future valuation of $10 trillion.

Despite skepticism, MSTR shares have surged nearly 40% in 2025, reflecting investor optimism amid Bitcoin's broader bull run. Still, Schiff’s ironic nod to Bitcoin’s "usefulness" highlights the ongoing tension between traditional market skeptics and crypto proponents. Whether this hedging strategy proves successful remains uncertain, but it marks a notable moment when one of Bitcoin’s fiercest critics publicly acknowledged a practical application—even if only to mock it.

This development underscores Bitcoin’s evolving role in complex financial strategies and its growing entanglement with traditional equities, especially those closely tied to digital assets. As market dynamics shift, even the harshest opponents may be forced to reconsider Bitcoin’s utility in modern finance.