Bitcoin critic Peter Schiff has once again taken a jab at Trump’s US Bitcoin Reserve plan as BTC price slumped recently amid a broader crypto market crash. Simultaneously, he reiterated his view on how the US could have made profits if they had sold BTC to buy gold under the new administration.
Peter Schiff Mocks US Bitcoin Reserve Plan; Pushes For Gold Strategy
Economist and Bitcoin critic Peter Schiff has once again criticized Donald Trump’s Bitcoin push. In a recent X post, he said the US would have been in a better financial position if it had chosen gold instead of Bitcoin Strategic Reserve.
According to Schiff, the reserve, established on March 6, has already posted a 12% loss in value. In contrast, gold prices have slightly increased during the same period. Schiff said:
“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.”
Having said that, the US would have seen a 2% gain instead if it had shifted its focus towards the precious metal. In other words, Schiff reiterated his view that how gold remains the safer bet in uncertain economic times.
However, when another user pointed out that the Biden administration had already missed massive BTC gains years ago by selling early, Peter Schiff dismissed the claim. He responded that such comparisons are “irrelevant,” noting that profits or losses should be judged only from the moment the official reserve began.
Peter Schiff Warns Of US Recession
In a separate post, Schiff also raised red flags over the US economy. He linked Trump’s rising tariff plans to a possible recession and warned investors to brace for a sharp market downturn. According to him, the stock market hasn’t factored in the economic damage such trade policies could cause.
He further stated that even with the recent dip and crypto market crash, equities remain overvalued. If a recession hits, the US could face its worst economic downturn since the Great Depression. Schiff said even a 50% market drop might not be enough to reflect the true scale of the crisis.
Can The US Fed Save The Economy?
While Peter Schiff has warned over a potential US Recession after slamming Donald Trump’s Bitcoin Reserve plan, a user said that the recession is unlikely. However, responding to the user, Schiff sarcastically said that only the US Federal Reserve could stop it.
However, he warned that doing so would require pumping more liquidity into the system, potentially triggering runaway inflation. Considering that, along with Trump’s recent threat of an additional 50% Tariff on China has fueled market concerns.
Meanwhile, despite all these concerns, the market has recorded a strong recovery today, with the BTC price soaring to the $80K mark. However, investors must consider the current macroeconomic woes and other factors before putting their bets amid this uncertain period.
The post Peter Schiff Slams Trump’s Bitcoin Reserve Plan After 12% Loss appeared first on CoinGape.
