Veteran gold advocate Peter Schiff has reignited tensions with the crypto community, publicly criticizing President Donald Trump’s Bitcoin Reserve strategy. In a scathing post on X, Schiff argued that if the U.S. had opted for gold instead of Bitcoin, it would have avoided recent losses and even seen modest gains. The remarks came as Bitcoin wavered around $81,000 following weeks of erratic price action amid mounting U.S. recession concerns.
The critique struck a chord across financial circles, reigniting the age-old debate between digital assets and traditional stores of value. But unlike in past cycles, Peter Schiff’s latest jab comes at a politically charged moment, with the Strategic Bitcoin Reserve still in its infancy and Trump doubling down on crypto as part of his economic pivot.
Trump’s Strategic Bitcoin Reserve: A Risky Bet?
On March 6, Trump presented the Strategic Bitcoin Reserve, aimed at diversifying U.S. assets. His administration touted it as a bold step to modernize national reserves and align with growing institutional demand for Bitcoin.
However, Schiff isn’t buying it. Citing a 12% drop in Bitcoin’s price since the reserve was established, he posted on X:
“A month ago on Mar. 6th, Trump established the Strategic Bitcoin Reserve. So far, the value of the Bitcoin held in that reserve has declined by over 12%. Had the U.S. sold it and added to our gold reserve, not only would we have avoided that loss, but we would now have a 2% gain.”
The gold enthusiast believes the U.S. would have been better off sticking to time-tested hedges. He framed Bitcoin as volatile and unpredictable while characterizing gold as the more stable asset, especially during times of economic uncertainty.
Crypto Community Hits Back: “Gold Missed the Boat”
The crypto community was quick to fire back. Prominent X user “The Bitcoin Therapist” dismissed Schiff’s commentary as revisionist and cherry-picked, saying:
“You literally held gold and had the absolute worst ROI over a 15-year period only to finally be right in 2024–2025. Cherry picking is retarded. Bitcoin is and always will be a more favorable investment.”
The clash shows deep divides over how to hedge against macroeconomic uncertainty, especially with digital assets gaining traction as a modern alternative to gold. Despite recent corrections, Bitcoin is still up nearly 70% year-to-date and remains the best-performing major asset since 2020.
Some investors argue that a temporary downturn shouldn’t negate Bitcoin’s long-term potential especially as institutions and sovereign strategies begin embracing it at scale.
Recession Fears Add Fuel to the Fire
Peter Schiff’s gold advocacy wasn’t just about asset preference, it was also rooted in deep concerns about an imminent U.S. recession. According to data from Polymarket, a decentralized prediction platform, there’s now a 65% probability that the U.S. will enter a recession in 2025. Schiff believes that if such a downturn hits, it could rival the Great Depression in severity.
He’s also warned that U.S. equities remain dangerously overvalued and suggested that even a 50% market correction might understate the coming financial damage.
“Even if the stock market crashes in half, it may not fully reflect how bad this recession could get,” he warned during an X Spaces broadcast this week.
For Schiff, that’s more reason to go gold. But for crypto advocates, Bitcoin remains the only hedge that scales for both retail and sovereign adoption.
Trump vs. The Fed: Pressure Mounts on Powell
Meanwhile, Trump hasn’t remained silent on the state of the economy. He recently renewed pressure on Federal Reserve Chair Jerome Powell, publicly urging a rate cut to boost markets and stimulate recovery.
“Jerome is playing politics when he should be saving the economy. Cut the damn rates,” Trump said during a recent press briefing in Florida.
This added a layer of policy friction to an already volatile economic climate, placing the Fed at the center of both market stabilization and political chess.
Schiff, however, remains skeptical of any relief from central banks. When challenged by an X user who claimed a recession was unlikely, Schiff responded with sarcasm:
“Sure, just print more money and hope inflation doesn’t eat you alive.”
The Bigger Picture: Bitcoin, Gold, and Political Symbolism
This isn’t just about asset classes, it’s about ideology. Trump’s Bitcoin Reserve symbolizes a shift toward embracing financial innovation and appealing to younger, crypto-savvy voters. Peter Schiff’s gold-first philosophy, on the other hand, reflects a more traditionalist view rooted in monetary conservatism.
The political clash mirrors broader generational divides about what constitutes a safe haven asset. For gold supporters, Bitcoin is still too immature. For crypto natives, gold is a relic of a bygone era.
Despite Schiff’s loud warnings, market data paints a more nuanced picture. Bitcoin had rebounded above $81,000 at press time, rising nearly 7% in a single day after a minor dip. Still, volatility remains high, and the broader sentiment is fragile.
Conclusion: A Debate That Won’t Go Away
Peter Schiff’s takedown of Trump’s Bitcoin Reserve plan may have reenergized critics, but it has also spotlighted the broader conversation around what the U.S. should prioritize as a financial reserve in a digitizing economy. While Schiff remains unwavering in his gold allegiance, crypto markets continue to mature with or without government backing.
Whether Trump’s Bitcoin bet pays off will likely depend on both market performance and geopolitical decisions in the months ahead. What’s clear, however, is that the conversation is far from over.
FAQs
What is Trump’s Strategic Bitcoin Reserve?
Announced in March 2025, the Strategic Bitcoin Reserve is a proposed allocation of national assets into Bitcoin to hedge against inflation and signal support for digital financial infrastructure.
Why is Peter Schiff against the Bitcoin Reserve?
Peter Schiff believes gold is a more reliable hedge during economic uncertainty. He argues that Bitcoin’s volatility makes it unsuitable for sovereign reserves.
Has the Bitcoin Reserve lost value since its inception?
According to Peter Schiff, the value has dropped by around 12% since March 6, while gold would have posted a 2% gain during the same period.
Is a U.S. recession expected in 2025?
Prediction platform Polymarket currently places the odds of a 2025 recession at 65%, fueling debate about how the government should hedge economic risk.
What is Peter Schiff’s stance on the Federal Reserve?
He’s critical of the Fed and believes rate cuts will only delay an inevitable financial crisis, calling for more responsible fiscal policy.
Glossary
Bitcoin Reserve – A government-held reserve of Bitcoin intended as a financial asset for diversification and inflation hedging.
Polymarket – A decentralized prediction market platform where users can bet on real-world events like economic outcomes.
Strategic Bitcoin Reserve – Trump’s proposed initiative to allocate Bitcoin into the U.S. reserves.
Recession – A period of economic decline marked by reduced GDP, rising unemployment, and falling consumer spending.
Gold Hedge – Using gold to protect against currency devaluation or financial market downturns.
References
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