Peter Schiff Podcast: Bitcoin Hits All-Time Highs, MicroStrategy CEO Michael Saylor Compares Bitcoin to Crude Oil

This week, Peter took to his podcast to analyze the big movers in the crypto world. He discusses MicroStrategy's big bet on Bitcoin before diving deep

Peter's podcast this week covered a lot of ground, from Bitcoin's recent all-time highs to the Trump administration-to-be's plans on immigration, agriculture and food regulation. He also discussed a bill in the United Kingdom that's being called the Employment Rights Bill.

Bitcoin hit a new all-time high this week, and a lot of people are wondering what's driving the coin's recent surge. Peter thinks it has a lot to do with political optimism, especially among younger voters.

"If you're not a liberal by the time you're 22, you don't have a heart. If you're not a conservative by the time you're 28, you don't have a head," Peter said. "Well, a lot of 22-year-olds are buying Bitcoin, and Trump got their vote. He got their vote by pandering to their most important issue, which was getting rich off their Bitcoin. I always thought the promises made would not be kept. It's kind of par for the course in American politics—you promise everything to get elected and then screw over the people you promised."

Bitcoin advocate and Microstrategy CEO Michael Saylor recently compared Bitcoin to crude oil, saying that if you were to eliminate all of the crude oil in the world, the price would go up astronomically. But if you were to eliminate all of the Bitcoin in the world, nothing would change.

"He's talking again about Bitcoin and how it's digital energy. I mean, he's not even really saying it's digital gold anymore—he's saying it's digital energy," Peter said. "I always get a kick out of that, as if it's some kind of battery you can plug into things and power them with your Bitcoin. … He also said, 'Imagine what would happen if we eliminated all of the crude oil in the world.' … I mean, imagine a world without Bitcoin. Nothing would change."

With Bitcoin hitting new all-time highs, MicroStrategy has been buying up billions in the asset. But Peter thinks that if the price of Bitcoin goes down, MicroStrategy is toast.

"The only way it ends is with MicroStrategy going bankrupt," Peter said. "I don't see how this can end any other way other than the bankruptcy of this company, because their whole business model depends on pushing up the price of Bitcoin and borrowing money to do it. The minute they run out of the ability to borrow money, the whole thing collapses—because they are the big buyers. And without them, this whole thing collapses."

Moving on to American politics, Peter discussed the fervor of healthy food advocates like Robert F. Kennedy, Jr. But Peter thinks that while healthy food is good on the extremes, it's not always best on the margin.

"The reason food is processed and grown the way it is, with all these additives and preservatives, is entirely about lowering the cost," Peter said. "If you eliminate all that and switch to organic, healthy food, it's going to cost a lot more to grow, make, and deliver it. You can do that right now. … If we impose rules and regulations mandating healthier food and banning many processes or ingredients, we'll be forcing Americans to pay significantly more for groceries."

Finally, Peter discussed a bill in Great Britain that's being called the Employment Rights Bill. It's supposed to protect employees, but really it will just make it more expensive for businesses to hire people.

"The problem is when the government does this, when the government punishes employers for hiring people, they hire fewer people," Peter said. "They do whatever they can to avoid hiring people. And that's especially dangerous now when you have automation that's gaining more popularity. You have artificial intelligence. …The last thing government should be doing is making it more difficult, more expensive and less desirable for the people who create the jobs to actually do it."

The bill is part of a trend that paints entrepreneurs and businesses as villains, when in reality they're the ones that make society richer.

"The entrepreneur doesn't get a salary—he may not get anything. He only gets what's left over," Peter said. "Everybody else gets paid: the workers get paid, the landlord gets paid, the borrowed money and interest get paid. … If there's a loss, he reaches into his pocket, takes out a loan against his house, or dips into his savings. The workers don't have to do that. They don't have to kick in any money. …The unsung heroes are the entrepreneurs—the business owners."