Bitcoin News Today: Peter Schiff Criticizes Bitcoin as Speculative Despite 27% Surge, Cites Gold Miners Index 61% Gain

Peter Schiff, a prominent economist and founder of Euro Pacific Capital, has reiterated his skepticism toward Bitcoin despite its recent price surge, labeling the cryptocurrency a speculative asset lacking intrinsic value. In a recent analysis, Schiff dismissed the narrative of Bitcoin as "digital gold," arguing that its perceived scarcity—capped at 21 million coins—is an illusion created by divisibility into satoshis, akin to slicing a pizza into smaller pieces without altering the total amount [1]. He emphasized that while Bitcoin’s price has surged past $120,000 in July 2025, such gains do not validate its role as a store of value, framing its all-time highs as evidence of a speculative bubble [1].

Schiff contrasts Bitcoin with gold, a traditional safe-haven asset, by highlighting the latter’s physical utility and historical acceptance. He pointed to the Gold Miners Index (GDX) outperforming Bitcoin in 2025, with the index rising 61% compared to Bitcoin’s 27% gain, as a direct challenge to crypto-centric investment logic [1]. The economist also criticized Bitcoin’s energy-intensive proof-of-work mechanism and volatility, suggesting it functions more like a "decentralized Ponzi scheme" driven by speculative fervor rather than economic fundamentals [1].

While acknowledging a "Strategic Bitcoin Reserve" in his portfolio, Schiff clarified that the holdings are managed by donors and will never be sold, effectively negating personal ownership. This stance underscores his belief that Bitcoin’s value proposition remains unproven, even as he occasionally offers tactical advice, such as recommending a shift from Ethereum to Bitcoin based on chart analysis [1]. However, such recommendations do not align with his broader criticism of cryptocurrencies as inherently unstable assets.

Schiff further predicts that the 2025 financial crisis—potentially triggered by global economic instability, U.S. tariff policies, and geopolitical tensions—will expose Bitcoin’s fragility. He argues that crypto’s lack of intrinsic value will become evident during systemic shocks, unlike gold, which he believes would thrive if the U.S. dollar weakens [1]. His critique extends to crypto-friendly legislation, which he views as granting false legitimacy to Bitcoin while undermining the dollar’s dominance and economic stability [1].

The economist’s analysis has not gone unchallenged. Critics note that Bitcoin’s decentralized nature and growing institutional adoption counter his characterization of it as a speculative "meme coin." Nevertheless, Schiff’s arguments highlight a persistent rift in financial discourse: whether cryptocurrencies represent a paradigm shift or a fleeting speculative trend [1]. As debates intensify, his predictions for Bitcoin’s collapse during the next crisis remain a focal point for both supporters and detractors.

[1] Source: [1] Peter Schiff Calls Bitcoin a Speculative Asset Despite Recent Gains, Here’s Why (https://coinmarketcap.com/community/articles/6888f9343981806f1249e17a/)