Peter Schiff, the popular economist, gold enthusiast, and maybe the loudest Bitcoin-critic is sounding the alarm about Bitcoin and its potential impact on the U.S. dollar.
Schiff took to social media to share his thoughts, suggesting that Bitcoin might not directly replace the dollar but could lead to serious economic mismanagement.
How Bitcoin could undermine the dollar
He’s been a vocal critic of government spending and fiscal policies, warning that these actions could worsen economic vulnerabilities.
“Ironically, Bitcoin may end up destroying the dollar—not because it replaces it as a global reserve currency, but because the U.S. government embraces Bitcoin, prints trillions to buy it, and fuels a bubble that squanders our wealth.”
But as some experts warn, in this sentence, the problem isn’t the Bitcoin, but the „government embraces Bitcoin, prints trillions to buy it” part. The government destroying the dollar, not Bitcoin.
They can spend the existing money, and everything would be alright. They can print, and the dollar will be destroyed.
Insider job
Schiff’s concerns are heightened by new political proposals. President-elect Donald Trump has floated the idea of creating a strategic Bitcoin reserve to diversify the nation’s financial assets.
This aligns with Senator Cynthia Lummis’ BITCOIN Act of 2024, which wants for the U.S. Treasury to acquire one million bitcoin over five years.
Schiff argues that if this happens, it would waste billions of taxpayer dollars and divert capital from essential industries needed for economic growth.
The U.S. dollar’s status as the world’s primary reserve currency is facing scrutiny amid shifting global economics and geopolitical tensions.
Trump has even threatened 100% tariffs on BRICS nations if they pursue alternatives to the dollar, trying to deter any de-dollarization efforts.
Countries like China and Russia are already working to reduce their reliance on the dollar by boosting their gold reserves and exploring other currencies.
Fix the money, fix the world
Wharton School finance professor Jeremy Siegel has also raised eyebrows about Bitcoin’s potential to challenge the dollar’s dominance.
He emphasized that it’s important to defend the dollar against the rising popularity of decentralized digital assets, but he doesn’t mention that U.S. politicians could defend it, but they aren’t. It’s not Bitcoin’s fault after all.
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