Peter Schiff, a well-known economist and Bitcoin critic, has once again voiced his skepticism over the United States’ Bitcoin Reserve plan, which was established under former President Donald Trump. Following a recent slump in Bitcoin’s price, Schiff reiterated his stance that the US would have been better off investing in gold rather than Bitcoin, especially as the broader cryptocurrency market experiences a significant downturn.
In a recent post on X, Schiff pointed out that the Bitcoin Reserve, created on March 6, has already faced a 12% loss in value. He argued that had the US chosen to sell its Bitcoin holdings and instead added to its gold reserves, it could have avoided losses and even seen a 2% gain. Schiff highlighted that while Bitcoin’s value dropped, gold prices have slightly increased over the same period, reinforcing his belief that gold remains a safer and more reliable store of value, particularly in volatile economic times.
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.
— Peter Schiff (@PeterSchiff) April 7, 2025
Schiff dismissed claims that the Biden administration had missed out on significant Bitcoin gains years ago by selling early, calling such comparisons “irrelevant.” He stressed that any profits or losses should only be considered from the moment the official Bitcoin Reserve was established, underscoring his position that gold is a more stable investment option.
Beyond Bitcoin, Schiff also raised alarms about the US economy. He linked rising tariffs, particularly Trump’s proposed 50% tariff on China, to a potential recession. Schiff warned that the stock market, still overvalued despite recent dips, could be heading for the worst economic downturn since the Great Depression. According to Schiff, even a 50% drop in the market might not reflect the true scale of the impending crisis.
Also Read: Peter Schiff Warns: Bitcoin Could Crash to $10K as Gold Surges
While Schiff’s concerns about the US economy are met with skepticism by some, his predictions about Bitcoin’s volatility and the broader market’s fragility highlight the uncertainty that continues to surround both traditional and digital assets in the current economic climate.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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