Outspoken Bitcoin critic and gold advocate Peter Schiff is back in the spotlight, this time slamming the US government’s proposed Strategic Bitcoin Reserve, a move he calls nothing short of a “crypto scam” designed to lure Americans into risky speculation.
Taking to X, Schiff accused former President Donald Trump of fueling what he described as a dangerous financial mania, claiming the plan is deliberately crafted to mislead investors and inflate the already speculative crypto markets.
In his scathing post, Schiff argued that the Strategic Bitcoin Reserve is a political stunt, encouraging millions of Americans to pour money into a highly volatile asset class without understanding the real risks.
He blamed Trump for using his influence to push Bitcoin and crypto-related projects onto the public, suggesting this political backing creates a false sense of security around digital assets—especially among retail investors unfamiliar with the market’s complexities.
Schiff Doubles Down on MicroStrategy, Calls Out TRUMP Meme Coin Collapse
Schiff didn’t stop at attacking the Bitcoin reserve. He reignited criticism of MicroStrategy’s aggressive Bitcoin strategy, pointing to the firm’s deep leverage and exposure to BTC price swings.
According to Schiff, MicroStrategy’s financial health is already showing cracks, with the company’s stock down more than 55% since November 2024. “This is the exact playbook the government is now promoting—borrow big, bet on Bitcoin, and hope it doesn’t collapse. That’s not strategy; that’s gambling,” Schiff warned.
He also aimed the TRUMP meme coin, which once soared on speculation fueled by Trump’s pro-crypto rhetoric. The token has plunged over 80% from its peak, currently trading at $11.08 with a market cap of $2.21 billion.
Schiff called the TRUMP coin “a textbook example of political hype driving financial ruin,” adding that millions of dollars were funneled into the token based solely on its name and perceived connections not fundamentals.
A Long-Standing Critic of Crypto and Government Involvement
Schiff’s latest tirade is consistent with his years of vocal opposition to Bitcoin, crypto markets, and government involvement in digital assets. He has repeatedly warned that Bitcoin is not a legitimate long-term asset and views any state-backed crypto venture as a misuse of public resources.
“Bitcoin is not gold, it’s not a safe haven, and it certainly shouldn’t be treated as a reserve asset,” Schiff reiterated.
His remarks came shortly after Trump praised the Strategic Bitcoin Reserve during a speech at the Blockworks Digital Assets Summit, signaling that the initiative will be part of his long-term economic plan if re-elected.
The Growing Divide: Bitcoin as Strategy or Speculation?
As the crypto market evolves, the debate between Bitcoin proponents and critics like Schiff continues to intensify. The US government’s potential entry into Bitcoin holdings fuels an already heated argument over whether digital assets should play a role in national economic strategy.
While Trump’s camp frames the move as forward-thinking and bullish for America’s financial future, Schiff and other skeptics see it as a political gimmick one that could leave ordinary Americans footing the bill when the bubble bursts.
What’s Next?
Whether the Strategic Bitcoin Reserve moves forward or not, Schiff’s warnings highlight growing fears about speculative excess in both crypto markets and political decision-making.
With elections approaching and crypto policy shaping up as a key economic issue, the battle lines are clear: Is Bitcoin America’s next big reserve asset or just another bubble waiting to burst?
