Peter Schiff, a famous gold advocate and long-time Bitcoin skeptic, has once again spoken out about the leading cryptocurrency.
On X (formerly Twitter), Schiff declared that "Bitcoin has become a national security threat."
Peter Schiff Criticizes Bitcoin
In his post, Schiff identified Bitcoin as a national security threat used to bribe government officials, and added that buying BTC is a waste of money.
"It's a waste of private citizens' money to voluntarily buy Bitcoin. But it's a violation of the public trust when they use it to bribe government officials and waste public money. Bitcoin is now public enemy #1." – Schiff statement.
This provocative statement came amid growing discussions about Bitcoin's role in the global economy. Institutional adoption of Bitcoin is increasing, and Bitcoin ETFs have been reported to exceed Satoshi Nakamoto's estimated 1.1 million BTC holdings.
Schiff's criticism focuses on his belief that Bitcoin diverts capital from productive sectors, worsening economic inefficiency. He elaborated on this in a follow-up post.
"...Bitcoin has become a real threat to America, not gold. The threat is that the government will waste public money by misallocating more capital to Bitcoin and blockchain-related businesses, sacrificing productive businesses." – Schiff added.
Schiff, a long-time advocate of gold as a store of value, recently called the rise of Bitcoin the "biggest bubble in history." While acknowledging Bitcoin's investment appeal, he believes it lacks intrinsic value and trusts the value provided by gold.
Despite his persistent criticism, Bitcoin's price and adoption have made a mockery of his predictions. Crypto enthusiasts are enjoying this, with Nate Geraci, president of ETF Store, responding wittily to Schiff's latest remarks.
"In just 11 months, Bitcoin has evolved from a sinking ship to a national security threat... It's fun to watch." – Geraci joke.
Bitcoin Debate Heats Up
Schiff's labeling of Bitcoin as a "national security threat" reflects broader concerns about the role of cryptocurrencies in financial markets and governance. Bitcoin critics often point to potential misuse in illicit activities and competition with sovereign currencies. Supporters, on the other hand, argue that Bitcoin is a hedge against financial innovation and inflation.
As the debate over Bitcoin continues, Schiff remains a prominent voice. The crypto community enjoys refuting his claims. His focus on Bitcoin while advocating for gold reflects the growing importance of digital assets in economic discourse.
Meanwhile, Schiff's position has resonated with some, including X user JB, who simply reposted Schiff's original message, echoing his concerns. However, many in the crypto space dismiss such claims and point to broader economic issues. Bitcoin proponent Erik Voorhees left a sarcastic comment on Schiff's argument.
"Yeah, Bitcoin's the problem, not the $36 trillion in debt." – user statement.
Schiff's remarks also came after his tongue-in-cheek suggestion that Trump Media should invest in Bitcoin. Despite his criticism of Bitcoin, the Bitcoin critic is one of those who supported Donald Trump in the 2024 US presidential election, adding complexity to his public persona.
