Prominent economist and long-time Bitcoin skeptic Peter Schiff has brutally attacked the proposed Strategic Bitcoin Reserve as a “scam” aimed to deceive Americans into putting their money in digital assets.
Through an X platform post Schiff blames Donald Trump for spreading false hype that could damage investors by leaving them broke. The cryptocurrency analyst mentioned how the $TRUMP meme coin experienced an 80% drop since its peak of value despite Trump having pro-crypto beliefs.
The crypto industry is using the Strategic Bitcoin Reserve to scam more Americans into buying crypto. Thanks to Trump, more Americans will lose more money in crypto than in any prior speculative mania in history. The $TRUMP meme coin, already down over 80%, is a perfect example.
— Peter Schiff (@PeterSchiff) March 20, 2025
Schiff Warns of Financial Risk in Trump’s Crypto
Schiff says Trump uses his public endorsement to deceive investors who don’t realize they face extreme financial danger because of his crypto promotion. Peter believes that Trump’s crypto promotion and current market interest will cause more investors to lose money than any previous financial bubble.
Despite launching as a political cryptocurrency last year, the $TRUMP meme coin now experiences quick drops in market value. CoinMarketCap shows TRUMP dropped 32.57% in value during the latest month, with a market price of $11.08. Despite its losing streak, the meme coin continues to attract investors, showing a $2.2 billion market value in speculations. The asset traded a $509.56 million market volume in one day.
Schiff Warns Against Political Influence in Crypto
Schiff opposes politically connected cryptocurrencies because he believes their worth is unconnected from essential monetary rules. According to Peter, numerous investors trust that their political connections will lead to permanent revenue growth, but he believes this belief is incorrect.
Besides his points on meme coins, Peter speaks out against government participation in the cryptocurrency industry, which he regards as money spent wastefully. According to his view, Bitcoin fails to work as a suitable investment tool for extended periods, and he resists calls for government support of digital assets.
Following his support for the Strategic Bitcoin Reserve, Trump told Blockworks’ audience that his administration keeps crypto assets stored permanently, not disposing of them right away. Peter believes this action would weaken the nation’s financial stability because digital assets are inherently unsafe for government investments.
Schiff Targets MicroStrategy for Risky BTC Strategy
Since his opposition to official crypto projects Peter targets private organizations that invest in Bitcoin. Before this change of position he criticized MicroStrategy’s Bitcoin plan due to its debt funding of significant BTC purchases. Peter pointed out that MicroStrategy faced a 55% stock decline after November 2024, creating high risk in its heavy Bitcoin buying program.
Schiff actively opposes cryptocurrency participation while other investors debate its market value. Supporters of cryptocurrency see it as a path to new investments, but Peter believes these market trends create dangerous bubbles that harm investors who buy in.
Conclusion
Schiff insists on opposing Bitcoin and notable crypto projects because excessive speculation results in financial damage. According to Peter, the Trump administration’s crypto-friendly initiatives will trick investors into improper decisions, reaffirming his conviction that Bitcoin is a dangerous financial bet.
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FAQs
Why does Schiff oppose the Strategic Bitcoin Reserve?
He believes it’s a scam that misleads investors into risky crypto speculation.
Why is the $TRUMP meme coin risky?
Schiff says it’s a political hype-driven token that has lost over 80% of its value.
How is the $TRUMP coin performing?
It dropped 32.57% in a month, now at $11.08, with a $2.2 billion market cap.
What is Schiff’s stance on government in crypto?
He calls it wasteful spending and sees Bitcoin as unreliable long-term.
Glossary of Key Terms
Strategic Bitcoin Reserve – A plan to hold Bitcoin as a national asset.
Market Capitalization – Total value of a cryptocurrency.
Speculative Investment – High-risk investment for potential big returns.
Crypto Bubble – A hype-driven crypto price surge followed by a crash.
MicroStrategy – A company heavily invested in Bitcoin.
Reference
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