Renowned economist Peter Schiff came hard at the U.S. government's endorsement of Bitcoin (CRYPTO: BTC), predicting potential economic consequences.
What Happened: On Monday, Schiff took to X to express his concerns over the incoming Donald Trump administration's bet on the world's leading cryptocurrency.
"Thanks to the Trump administration's picking Bitcoin, Wall Street is winning bigly misallocating capital to Bitcoin and related value-destroying businesses," Schiff stated.
Schiff's remarks appeared to be directed at MicroStrategy Inc.'s (NASDAQ:MSTR) aggressive Bitcoin buying strategy, now being emulated by other Wall Street companies like Rumble Inc. (NASDAQ:RUM).
In what appeared to be a dig at Trump's popular 'Make America Great Again' slogan, Schiff said that becoming a Bitcoin superpower would make "America weaker."
When government picks winners and losers, it usually picks losers. Thanks to the #Trump administration's picking #Bitcoin, Wall Street is winning bigly misallocating capital to Bitcoin and related value-destroying businesses. Becoming the Bitcoin superpower makes America weaker.
— Peter Schiff (@PeterSchiff) November 25, 2024
Why It Matters: Schiff's comments come in the wake of his previous warnings about the potential economic catastrophe that could result from the U.S. government establishing a strategic Bitcoin reserve.
He warned that the government would have to print more dollars to buy additional Bitcoin, which could spiral into hyperinflation and severely devalue the dollar.
The staunch Bitcoin critic has also been unsparing in his attack on Michael Saylor's MicroStrategy, the firm currently hogging all the limelight because of its aggressive BTC purchases. He predicted a 'bloodbath' for MicroStrategy's stock, terming it the most overvalued on the MSCI World Index.
Despite Schiff's criticism, analysts argue that establishing a Bitcoin reserve would lend Bitcoin historic legitimacy and drive institutional interest, potentially accelerating its growth and pushing its value to unprecedented levels.
Price Action: At the time of writing, Bitcoin was trading at $94,547.92, sliding 3.16% in the last 24 hours, according to data from Benzinga Pro.
Image via Wikimedia Commons
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
