Economist Peter Schiff Launches Bitcoin Reserve, Criticizes Government Crypto Policies

Peter Schiff, a prominent economist and long-time advocate for gold, has made an unexpected move by launching his own Bitcoin Strategic Reserve to mark his 62nd birthday. This initiative is a satirical response to the United States government's pro-crypto policies, particularly President Donald Trump's proposal to establish a national Bitcoin strategic reserve. Schiff, known for his criticism of Bitcoin, announced on his X account (formerly Twitter) that he would not accept traditional birthday gifts but instead requested Bitcoin donations for his reserve. He also emphasized that he had transferred his Bitcoin from an exchange to a hardware wallet, a crucial step in securing crypto assets.

Schiff's Bitcoin reserve, despite his claims of being a true HODLer, has only managed to raise around $4,500, primarily from small donations from his followers. This modest amount underscores the satirical nature of his initiative, as he jokingly stated that his investment strategy is to "sink with the ship." Schiff has consistently opposed the integration of Bitcoin into government policy, advising President Joe Biden to sell all of the country's Bitcoin reserves. He argues that the proceeds from such a sale could help reduce the 2024 budget deficit. In his view, real assets like gold and oil are more suitable for national strategic reserves, as they contribute to the production of real goods and long-term economic growth.

Schiff's criticism extends to the close relationship between the government and the crypto industry, particularly under Trump's administration. He described the recent Crypto Summit held at the White House as a "national disgrace" and criticized crypto projects directly associated with Trump, such as the $TRUMP meme token. Schiff believes that such projects are examples of speculative mania and that Trump's support for these tokens could lead to significant financial losses for Americans. Despite an initial surge in the $TRUMP token's value following Trump's promotion, it has since dropped by more than 84% from its peak.

Schiff argues that government involvement in crypto is not only economically risky but also raises ethical and governance concerns. He highlights the potential conflict of interest if public officials are involved in widely promoted crypto projects, which could undermine public trust in a neutral and transparent government. As a strong advocate for a gold-based financial system, Schiff has long warned that crypto is a speculative bubble that will eventually burst. However, his recent actions show that he acknowledges the symbolic and narrative influence of crypto in the public sphere.

Through his own version of Bitcoin reserves, Schiff not only satirizes the government but also demonstrates the significant influence of Bitcoin as a tool for social and political criticism. Regardless of the merits or drawbacks, this narrative reinforces crypto's position as a central topic in modern economic and governance discourse. Schiff's actions, while satirical, underscore the growing importance of cryptocurrencies in contemporary financial and political conversations.