Bitcoin Critic Peter Schiff Calls US Strategic Reserve a Crypto Scam
Highlights
- Peter Schiff claims the Strategic Bitcoin Reserve is misleading Americans into crypto.
- Schiff warns Trump’s influence may cause historic crypto losses for investors.
- The $TRUMP meme coin has already dropped over 80%, supporting Schiff’s concerns.
Bitcoin critic Peter Schiff has strongly criticized the creation of a Strategic Bitcoin Reserve, arguing that it is a deceptive initiative designed to mislead investors into purchasing cryptocurrency. Schiff, a known economist and gold advocate, accused former President Donald Trump of fueling what he describes as a speculative mania that could lead to unprecedented financial losses for American investors.
Peter Schiff Warns of Massive Crypto Losses Under Trump
In a post on the X platform, renowned Peter Schiff claimed that the Strategic Bitcoin Reserve is misleading Americans into risky investments. He stated that this initiative is being used to encourage speculation, ultimately leading to financial losses for those who invest.
Schiff blamed Trump for promoting Bitcoin and crypto-related projects, arguing that his influence could result in more Americans losing money. He warned that the combination of political support and crypto hype could draw investors without fully understanding the risks involved.
Earlier on, Schiff shared his reasons for doubting MicroStrategy’s Bitcoin strategy, citing the company’s heavy reliance on debt and volatile BTC prices. He argued that the firm’s financial health is at risk, especially with its stock dropping over 55% since November 2024.
TRUMP Meme Coin Decline
Schiff pointed to the TRUMP meme coin as an example of how crypto speculation can lead to losses. The top meme coin, which gained popularity due to its association with Trump’s pro-crypto stance, has already declined by over 80% from its peak. Peter Schiff argued that many investors bought into the token expecting it to benefit from Trump’s influence.
He suggested that the hype surrounding politically affiliated cryptocurrencies is misleading. This is because many investors believe such assets will perform well simply due to their connection with public figures.
As of the time of this writing, the TRUMP meme coin stands at $11.08, a 32% decline in one month. The meme coin had a market capitalization of $2.21 billion and the trading volume recorded over the last 24 hours was $509.56 million.
Schiff Criticizes Government Involvement in Crypto
Peter Schiff has consistently voiced opposition to government involvement in cryptocurrency markets. He earlier dismissed the notion of governments supporting crypto ventures and labelled them as wasteful spending. He stuck to his view that Bitcoin is not a real assets to be held for long-term strategy.
His comments come after Trump praised the Strategic Bitcoin Reserve in a speech at the Blockworks Digital Assets Summit. Despite the Bitcoin critics, the Trump administration has revealed plans to hold crypto assets long-term rather than selling them early.
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