Peter Schiff Rips the Strategic BTC Reserve Proposal That Might Come into Effect With the Re-election of Former President Donald Trump

While many industry leaders and some lawmakers are celebrating this proposal, Peter Schiff has detailed why this move, if achieved, can destroy the United States.

Economist Peter Schiff has slammed the strategic BTC Reserve proposal that might come into effect with the re-election of former President Donald Trump. While many industry leaders and some lawmakers are celebrating this proposal, Schiff has detailed why this move, if achieved, can destroy the United States.

Schiff, who is also a gold bug, has never relented in his criticism of Bitcoin and other cryptocurrencies. Despite the massive gains recorded by BTC in 2024, Schiff maintained his stance, adding that the digital asset is a scam. He also predicted that the price of Bitcoin will crash to zero in the coming years.

Now, with the proposal for the U.S. government to establish a Bitcoin reserve, Schiff sees another opportunity to air his views on the primary cryptocurrency. According to the economist, if the government decides to purchase 1 million BTC, it will be forced to buy more.

He explained that the initial purchase will drive the price of Bitcoin to a new high, turning many early buyers into millionaires and billionaires. This push will then see these investors sell their coins to cash out the profits accrued over the years. As a result, the BTC holding of the U.S. government will fall drastically.

To save face, the government will be left with no choice than to print dollars to buy more BTC and keep the price afloat. However, Schiff believes this is unsustainable as Bitcoin in this instance cannot stand as a proper hedge for the dollar. His believes this reality will ultimately devalue the U.S. Dollar. But, he adds, the price of Bitcoin will also tank in the long term.

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