Renowned Bitcoin critic Peter Schiff has labelled Bitcoin (CRYPTO: BTC) as a greater threat to the U.S. than to gold.
What Happened: In a post on social media platform X on Sunday, Schiff criticized the possible use of public funds to buy Bitcoin.
While acknowledging private investments as personal choices, Schiff argued that government purchases of Bitcoin misallocate resources, harming productive sectors. He sees Bitcoin as a greater concern for the U.S. than a competitor to gold.
"The threat is that the government squanders the public's money buying it," Schiff wrote, adding that the government is misdirecting more capital to Bitcoin and blockchain related business at the expense of productive businesses.
In another tweet, Schiff highlighted that the U.S.'s massive trade deficit and rising tariffs will increase import costs.
He urged policymakers to focus on rebuilding domestic factories, supply chains, and workforce skills rather than investing in Bitcoin, which he believes misuses scarce capital.
Also Read: Peter Schiff Calls MicroStrategy A 'Great Short' And Issues A Grim Warning: 'It Can Only End In Bankruptcy'
Why It Matters: Schiff's remarks come as Bitcoin reached a new all-time high above $100,000 the previous week, reigniting debates about its long-term viability and economic impact.
Schiff continues to view Bitcoin as speculative and destructive, especially when public funds are involved.
He recently questioned financial analyst Jim Cramer's bullish stance on the cryptocurrency, saying, "These seem like the type of statements typically made at market tops!"
In the past, Schiff has repeatedly expressed regret about not buying Bitcoin to bet on "other people being dumb." However, Schiff also added that despite not buying at $1 it does not mean he will but it now.
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