Peter Schiff Challenges Flawed Bitcoin Use Case Propositions

Coinspeaker
Peter Schiff Challenges Flawed Bitcoin Use Case Propositions

Anti-Bitcoin entrepreneur Peter Schiff recently weighed in on the ‘flawed’ logic of using Bitcoin to offset the United States National Debt.

For context, quite some Bitcoin Marxists believe that the US government could acquire BTC now, HODL it, and sell it after 20 years to repay the country’s National debt. These Bitcoin community members believe this strategy would not lead to inflation.

The rationale behind this suggestion is that BTC price will skyrocket to millions of dollars per coin. This crypto price speculation also precipitated from the optimism that the US Federal Reserve will soon pivot to money printing. If this is the case, the US National Debt is bound to increase further. For Schiff, this logic is absolutely misguided and flawed.

In his opinion, believing that the price of Bitcoin could reach such high levels as a result of inflation and that the US government could harness BTC for settling debt without inflating USD is quite contradictory.

As his custom is, the Bitcoin critic questioned the “never sell your Bitcoin” investment philosophy promoted by President Donald Trump and Michael Saylor.

“If that’s true and no one who buys Bitcoin ever sells any, what’s the point of owning it?” Schiff probed on X.

According to Schiff, adopting such a strategy would eventually cause investors to live in poverty while they accumulate Bitcoin. He thinks that this further defeats the purpose of investing in the flagship cryptocurrency.

During the just concluded 2024 Bitcoin Conference which took place in Nashville, Tennessee, a few top names shared their positive BTC sentiment which Schiff did not fail to attack. Wyoming Senator Cynthia Lummis announced a proposal to use $70 billion from the US reserve to buy 1 million BTC. This is equivalent to 5% of the total supply.

To give credence to her investment proposal, Senator Lummis cited the historic Louisiana Purchase which doubled the size of the US land at the cost of 3 cents per acre. But Schiff did not agree with her, rather he stated that “borrowing billions to buy Bitcoin adds nothing but debt and inflation.”

The fact that the US government is already in debt, means that additional expenditure would equate to further borrowing.

Robert F. Kennedy Jr. also talked about directing the Department of Justice (D0J) and the US Marshals to push 200,000 BTC reserve held by the government to the US Treasury. Thereafter, the Treasury will hold on to the huge holding as a strategic asset. RFK also suggested a daily purchase of 550 BTC until the United States accumulates a reserve of at least “4 million” BTC.

Peter Schiff criticized the Kennedy Bitcoin proposal, calling it a “vote-buying” strategy. He believes that RFK is trying to appeal to the emotions of BTC enthusiasts.

Peter Schiff Challenges Flawed Bitcoin Use Case Propositions