Peter Schiff takes aim at Trumps Bitcoin reserve move after 12% decline
- Schiff doubled down on his long-standing position that gold remains a far safer asset.
- Beyond Bitcoin, Peter Schiff also issued a broader warning about the US economy.
- Schiff believes the US could be heading toward its worst economic downturn since the Great Depression.
Economist and long-time Bitcoin critic Peter Schiff has renewed his attack on former President Donald Trumps Bitcoin reserve plan, highlighting fresh concerns as the cryptocurrency market suffers a major setback.
With Bitcoin (BTC) down 12% since the reserves creation, Schiff argues the United States would have been better off investing in gold instead.
In a recent post on X (formerly Twitter), Schiff criticized the Bitcoin Strategic Reserve, which was established on March 6 under Trumps initiative.
He pointed out that while Bitcoins value has dropped sharply, gold prices have seen modest gains over the same period.
So far, the value of the Bitcoin held in that reserve has declined by over 12%. Had the US sold it and added to our gold reserve, not only would we have avoided that loss, but we would now have a 2% gain, Schiff wrote.
Schiff doubled down on his long-standing position that gold remains a far safer asset, especially in times of economic uncertainty.
He emphasized that investing in gold would have not only protected the reserves value but also generated a small return highlighting the precious metals reputation as a reliable hedge against inflation and market volatility.
When a user pointed out that the Biden administration previously missed significant Bitcoin gains by selling early, Schiff dismissed the comparison as irrelevant.
He stressed that the reserves performance should be judged only from the moment it was officially established, not based on hypothetical past moves.
Schiff warns of economic recession
Beyond Bitcoin, Peter Schiff also issued a broader warning about the US economy.
In another post, he linked Trumps escalating tariff policies to an increased risk of recession, cautioning that the financial markets have not fully priced in the potential damage.
Schiff believes the US could be heading toward its worst economic downturn since the Great Depression.
He warned that even with the current pullback, both equities and crypto assets are still highly overvalued.
In his view, a 50% market drop might not be enough to accurately reflect the scale of the upcoming crisis.
As Bitcoin struggles to regain momentum and economic uncertainty looms, Schiffs warnings are adding to growing concerns among investors looking for safer investment options like gold.
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