Bitcoin: Scarcity-driven Superiority, or Ponzi Scheme

Is Bitcoin a scarce, valuable asset or a Ponzi scheme? In his December 2025 paper entitled “The Great Bitcoin Debate: Saylor’s Maximalism Versus Schiff’s Monetary Traditionalism”, David Krause examines the debate between Bitcoin maximalists (represented by Michael Saylor) and traditional monetary economists (represented by Peter Schiff), encapsulated as follows:

1. Saylor: Bitcoin’s fixed supply of 21 million coins and decentralized architecture make it superior to both fiat currencies and traditional stores of value, including gold.
2. Schiff: Physical gold’s millennia-long track record, industrial utility and tangible properties make it an authentic inflation hedge, while Bitcoin is a speculative bubble driven by collective belief rather than intrinsic value.

He analyzes the theoretical foundations underlying each position, examines the empirical evidence regarding Strategy’s controversial corporate strategy and reviews the academic and financial industry literature addressing Bitcoin’s dual nature as speculative asset and store of value. Based on these inputs, he finds that: (more…)