Peter Schiff Declares Bitcoin “Public Enemy Number One” and Warns of Economic Impacts
- Bitcoin diverts capital from productive sectors, says Peter Schiff.
- Institutional adoption of Bitcoin grows, ETFs hold more BTC.
- Bitcoin hits $100.000, fueling debates over its future.
Economist and gold-digger Peter Schiff has once again criticized Bitcoin, calling it a threat to U.S. national security. In a recent post on the X platform (formerly Twitter), Schiff expressed concerns about the use of public funds to purchase Bitcoin, arguing that such a practice would divert capital from productive sectors of the economy.
Bitcoin has become a national security threat. It's one thing when private citizens voluntarily waste their own money buying # Bitcoin . But it crosses the line when they bribe government officials to squander the public's money buying it. Bitcoin is now public enemy number one.
- Peter Schiff (@PeterSchiff) December 8, 2024
Schiff acknowledged that private investments in Bitcoin are personal choices. However, he stressed that government purchases of the cryptocurrency would result in misallocation of resources, harming productive areas. He stated: “The danger is that the government will waste public money buying Bitcoin, diverting more capital to blockchain-related businesses at the expense of productive enterprises.”
Furthermore, Schiff pointed out that the US trade deficit and increased import tariffs would increase import costs. He urged policymakers to focus on rebuilding domestic factories, supply chains and upskilling the workforce rather than investing in Bitcoin, which he said is a poor use of scarce resources.
The statements come as Bitcoin hit a new all-time high, surpassing $100.000 last week, reigniting debates over its long-term viability and economic impact. Schiff maintains his view that Bitcoin is speculative and destructive, especially when public funds are involved.
He recently questioned financial analyst Jim Cramer’s bullish stance on the cryptocurrency, stating, “These seem to be the kind of statements typically made at the top of the market!” In the past, Schiff has repeatedly expressed regret for not buying Bitcoin to bet “on other people’s foolishness.” However, he added that while he didn’t buy at $1, that doesn’t mean he will now.
Schiff also labeled Bitcoin a “national security threat,” citing its misuse and impact on economic efficiency. Despite calling BTC a bubble, Schiff’s claims contrast with its growing institutional adoption and ETF success. Crypto advocates scoff at Schiff, highlighting broader economic issues like the national debt as more pressing concerns.
Schiff’s criticism of Bitcoin comes amid ongoing discussions about the cryptocurrency’s role in the global economy. Its growing adoption by institutional investors is a significant development, with Bitcoin ETFs reported to hold more than 1,1 million BTC, surpassing estimates of Satoshi Nakamoto’s holdings.
Schiff argues that Bitcoin diverts capital away from productive sectors, exacerbating economic inefficiencies. He elaborated on this idea in a subsequent post: “The danger is that the government will waste public money buying Bitcoin, diverting more capital to blockchain-related businesses at the expense of productive enterprises.”
Schiff’s labeling of Bitcoin as a “national security threat” speaks to broader concerns about the cryptocurrency’s role in financial markets and governance. Critics of Bitcoin often cite its potential misuse in illicit activities and its perceived competition with sovereign currencies. On the other hand, supporters argue that it represents financial innovation and a hedge against inflation.
At the time of publication of this article, Bitcoin was trading at US$98.087,60, down 1.9% in the last 24 hours.
As the Bitcoin debate rages on, Schiff remains an influential voice — though many in the crypto community would like to contradict him. His consistent focus on Bitcoin, even as he champions gold, reflects the growing prominence of digital assets in economic discourse.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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