Bitcoin critic Peter Schiff recently spoke about the flawed logic of the Bitcoin community arguing about the US National Debt. Many Bitcoin proponents have been stating that the BTC price will soar to millions per coin since many believe that the Federal Reserve will pivot to money printing soon thereby taking the US national debt even further. Schiff finds this logic absolutely misguided and flawed.
Peter Schiff Criticizes Bitcoin Logic
Schiff slammed the idea that the US government could purchase Bitcoin now and sell it 20 years later in order to repay the national debt without causing inflation. He also highlighted the contradictory nature of believing that the Bitcoin price could reach such high valuations due to inflation, while simultaneously suggesting that the government could use Bitcoin to address the debt issue without further inflating the currency.
Furthermore, Schiff questioned the investment philosophy promoted by President Donald Trump and Michael Saylor wherein both advise to “never sell your Bitcoin”. While challenging this notion on Twitter, Schiff asked: “If that’s true and no one who buys Bitcoin ever sells any, what’s the point of owning it?”
Peter Schiff said that this approach could lead to a paradox wherein investors live in poverty while accumulating BTC. He questioned the practical appeal of such a strategy, suggesting it undermines the purpose of investing in Bitcoin.
Both @saylor and #Trump say “never sell your #Bitcoin.” If that’s true and no one who buys Bitcoin ever sells any, what’s the point of owning it? What’s the appeal of living in poverty, dying with a big stack of Bitcoin, with successive generations of heirs repeating the process?
— Peter Schiff (@PeterSchiff) July 28, 2024
Also Read: US Fed Rate Cut on Radar, Will Bitcoin (BTC) Breakout In August?
Schiff Slams Sen. Lummis’ Bitcoin Investment Proposal
During the Bitcoin conference last Weekend, Wyoming Senator Cynthia Lummis proposed to use $70 billion from the US reserve to buy 1 million Bitcoins i.e. 5% of the total supply. The Senator likened this investment to the historic Louisiana Purchase which doubled the size of the US land at the cost of 3 cents per acre.
Schiff stated that “borrowing billions to buy Bitcoin adds nothing but debt and inflation”. He added that the US government is already in debt, which means that additional expenditure would require further borrowing.
He also stated that Senator Lummis’ suggestion of using forex reserves for the BTC purchase is the same as borrowing, while the reserves could be used to reduce the national debt. Schiff warned that such a move would leave the U.S. without reserves, potentially exacerbating the country’s financial instability.
Also Read: Gemini Co-Founder Warns of Kamala Harris’ ‘Big Bluff’ to Crypto Industry
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