Peter Schiff's Bitcoin U-turn: From Reserve Support to Fraud Accusations

Coin WorldMonday, Mar 3, 2025 3:03 am ET

1min read

Economist Peter Schiff has sparked controversy with his contradictory stance on a strategic Bitcoin reserve. Initially, he supported the idea, countering Donald Trump’s proposal to include XRP as a reserve asset alongside other cryptocurrencies. However, in a surprising reversal, Schiff has now renounced his BTC reserve endorsement. In his latest comments, Schiff accused Bitcoin promoters of fraudulent behavior, claiming they manipulated information to boost the BTC price.

Schiff’s reversal comes on the heels of reports suggesting he had backed a strategic Bitcoin reserve, particularly as an alternative to XRP. However, he has now dismissed these claims, emphasizing that he never supported a Bitcoin reserve. Instead, Schiff criticizes the reports, alleging that Bitcoin promoters manipulate information to boost the cryptocurrency’s value. He added, “This type of fraud is common in Bitcoin.”

In response to President Donald Trump’s decision to establish a US crypto reserve that includes Bitcoin, XRP, Solana, and Cardano, Peter Schiff shared his perspectives. While Schiff wrote on X that he understood “the rationale for a Bitcoin reserve,” he strongly opposed the idea of an XRP reserve. He posited, “But what’s the rationale for an XRP reserve? Why the hell would we need that?”

While the XRP community countered Peter Schiff’s comments by highlighting the cryptocurrency’s potential, Bitcoin enthusiasts assumed his remarks signaled support for a BTC reserve. The enthusiasts celebrated his words, “Bitcoin is digital gold, which is better than analog gold. So let’s create a Bitcoin reserve too.” However, via his latest post, he questioned the BTC supporters for misinterpreting his comments.

Following Donald Trump’s announcement of the crypto reserves plan, the market exploded, with the total market cap reaching $3.03 trillion, up 6.47%. Bitcoin, which hovered around the $85k mark, skyrocketed to $94,810, possibly triggered by Trump’s move and Peter Schiff’s statement.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.