Bitcoin has repeatedly hit new highs, but Schiff continues to be pessimistic.
As the price of BTC breaks through the historical high of 89,000, renowned economist Peter Schiff has issued another warning. This long-time critic of BTC strongly opposes the BTC reserve plan proposed by former President Donald Trump, calling it a "complete disaster" if implemented. Schiff posted on the social platform X yesterday (11/11), stating that the recent surge in BTC is "completely unrelated to its so-called fundamentals," and he questioned the phenomenon of BTC price rising while the US dollar strengthens and gold drops. Schiff insisted that the US economy is in a period of prosperity, with a drop in the debt-to-GDP ratio, reducing the market's demand for an alternative to the US dollar.
Image source: X Peter Schiff believes that the recent rise of BTC is "completely unrelated to its so-called fundamentals", and that the US economy is in a period of prosperity.
Government purchase of BTC may trigger a vicious cycle
Shiff detailed his concerns on social platform X. He predicted that if the US government started buying 1 million BTC, the huge purchase volume would push BTC prices to unprecedented levels. At that time, early investors would take profits, and the value of BTC held by the government would plummet. In order to maintain market stability, the government would have to print more US dollars to buy BTC, which would lead to the devaluation of the US dollar and ultimately fall into the vicious cycle of Inflation.
Image source: X Peter Schiff believes that government purchases of BTC will lead to a vicious cycle of inflation.
Nevertheless, Shifu seems to want a piece of the BTC frenzy. He announced yesterday (11/11) that he will be selling his BTC inscription (Ordinals Collection): Golden Triumph Ordinals on the Magic Eden platform. This series consists of 51 on-chain BTC block inscriptions, with a current floor price of 0.1245 BTC, equivalent to approximately $10,774.
Sheffield said: "There are only 21 million BTC in the world, but Golden Triumph only has 50, which is obviously more valuable. This is a mathematical problem that cannot be refuted."
Image source: X Peter Schiff announces the issuance of his own inscription 'Golden Triumph Ordinals'
7 possible reasons why the US BTC reserve may backfire
In addition, regarding the possibility of Trump including BTC in the US reserves, foreign media CryptoNewsZ has compiled a list of seven potential risks that Shepherd has listed in the past regarding the establishment of a US BTC reserve as follows:
Bitcoin holders profit by selling: if the United States buys a large amount of BTC and the price soars, many long-term holders may start to cash out, causing a supply-demand imbalance.
The vicious cycle of continuous purchases: In order to stabilize the market, the government will be forced to continuously buy more BTC, which in turn requires printing more US dollars.
The value of the US dollar continues to decline: the government printing money to buy BTC will cause serious Inflation.
Severe Inflation Risk: Excessive printing of money will lead to a complete depreciation of the US dollar and the economy will fall into severe inflation.
Forced liquidation of BTC: After inflation intensifies, the government may be forced to dump BTC to pay for expenses, triggering a market collapse.
Bitcoin holder wealth gap: some investors take profits in time, while others may face the risk of asset value dropping to zero.
Lack of Intrinsic Value: Compared to the tangible value of gold, BTC lacks Intrinsic Valuesupport.
The market response is polarized, and Cryptocurrency continues to strengthen
However, not everyone agrees with Hsu's pessimistic prediction.
BTC Magazine CEO David Bailey countered on X, saying, "The surge in BTC price will greatly boost the US economy and consumer confidence. This is a fact that is happening, welcome to join us."
Michael Saylor, the founder of MicroStrategy, humorously responded, 'You finally made me laugh, Peter.'
Currently, the overall Cryptocurrency market is showing an upward trend. After the Federal Reserve cut interest rates by one point, market sentiment turned optimistic. In the past 24 hours, the total settlement amount of Cryptocurrency reached 620 million US dollars, with shorts losing 255 million US dollars and longs losing about 366 million US dollars. Data shows that on the well-known derivative financial product exchange Deribit, the BTC futures price for contracts nearing 90,000 exceeded 2.8 billion US dollars.
Many supporters believe that BTC has the technical advantage to become a store of value tool. In fact, the BTC reserves of countries like Bhutan have exceeded $1 billion, indicating an increasing acceptance of BTC by various countries. Despite Senator Cynthia Lummis's proposal of relevant bills, Schiff believes that considering the potential economic disaster, the US government is unlikely to adopt this policy.
[Disclaimer] There are risks in the market, and investments should be made cautiously. This article does not constitute investment advice, and users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their specific situation. Invest at your own risk.
'Peter Schiff insists on faith! Strongly criticizes Trump's Bitcoin reserve plan: feared to trigger economic disaster' This article was first published in 'encryption city'
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
Peter Schiff sticks to his beliefs! Strongly criticizes Trump's Bitcoin reserve plan: fears it will trigger an economic disaster
Bitcoin has repeatedly hit new highs, but Schiff continues to be pessimistic.
As the price of BTC breaks through the historical high of 89,000, renowned economist Peter Schiff has issued another warning. This long-time critic of BTC strongly opposes the BTC reserve plan proposed by former President Donald Trump, calling it a "complete disaster" if implemented. Schiff posted on the social platform X yesterday (11/11), stating that the recent surge in BTC is "completely unrelated to its so-called fundamentals," and he questioned the phenomenon of BTC price rising while the US dollar strengthens and gold drops. Schiff insisted that the US economy is in a period of prosperity, with a drop in the debt-to-GDP ratio, reducing the market's demand for an alternative to the US dollar.
Image source: X Peter Schiff believes that the recent rise of BTC is "completely unrelated to its so-called fundamentals", and that the US economy is in a period of prosperity.
Government purchase of BTC may trigger a vicious cycle
Shiff detailed his concerns on social platform X. He predicted that if the US government started buying 1 million BTC, the huge purchase volume would push BTC prices to unprecedented levels. At that time, early investors would take profits, and the value of BTC held by the government would plummet. In order to maintain market stability, the government would have to print more US dollars to buy BTC, which would lead to the devaluation of the US dollar and ultimately fall into the vicious cycle of Inflation.
Image source: X Peter Schiff believes that government purchases of BTC will lead to a vicious cycle of inflation.
Nevertheless, Shifu seems to want a piece of the BTC frenzy. He announced yesterday (11/11) that he will be selling his BTC inscription (Ordinals Collection): Golden Triumph Ordinals on the Magic Eden platform. This series consists of 51 on-chain BTC block inscriptions, with a current floor price of 0.1245 BTC, equivalent to approximately $10,774.
Sheffield said: "There are only 21 million BTC in the world, but Golden Triumph only has 50, which is obviously more valuable. This is a mathematical problem that cannot be refuted."
Image source: X Peter Schiff announces the issuance of his own inscription 'Golden Triumph Ordinals'
7 possible reasons why the US BTC reserve may backfire
In addition, regarding the possibility of Trump including BTC in the US reserves, foreign media CryptoNewsZ has compiled a list of seven potential risks that Shepherd has listed in the past regarding the establishment of a US BTC reserve as follows:
Bitcoin holders profit by selling: if the United States buys a large amount of BTC and the price soars, many long-term holders may start to cash out, causing a supply-demand imbalance.
The vicious cycle of continuous purchases: In order to stabilize the market, the government will be forced to continuously buy more BTC, which in turn requires printing more US dollars.
The value of the US dollar continues to decline: the government printing money to buy BTC will cause serious Inflation.
Severe Inflation Risk: Excessive printing of money will lead to a complete depreciation of the US dollar and the economy will fall into severe inflation.
Forced liquidation of BTC: After inflation intensifies, the government may be forced to dump BTC to pay for expenses, triggering a market collapse.
Bitcoin holder wealth gap: some investors take profits in time, while others may face the risk of asset value dropping to zero.
Lack of Intrinsic Value: Compared to the tangible value of gold, BTC lacks Intrinsic Valuesupport.
The market response is polarized, and Cryptocurrency continues to strengthen
However, not everyone agrees with Hsu's pessimistic prediction.
BTC Magazine CEO David Bailey countered on X, saying, "The surge in BTC price will greatly boost the US economy and consumer confidence. This is a fact that is happening, welcome to join us."
Michael Saylor, the founder of MicroStrategy, humorously responded, 'You finally made me laugh, Peter.'
Currently, the overall Cryptocurrency market is showing an upward trend. After the Federal Reserve cut interest rates by one point, market sentiment turned optimistic. In the past 24 hours, the total settlement amount of Cryptocurrency reached 620 million US dollars, with shorts losing 255 million US dollars and longs losing about 366 million US dollars. Data shows that on the well-known derivative financial product exchange Deribit, the BTC futures price for contracts nearing 90,000 exceeded 2.8 billion US dollars.
Many supporters believe that BTC has the technical advantage to become a store of value tool. In fact, the BTC reserves of countries like Bhutan have exceeded $1 billion, indicating an increasing acceptance of BTC by various countries. Despite Senator Cynthia Lummis's proposal of relevant bills, Schiff believes that considering the potential economic disaster, the US government is unlikely to adopt this policy.
[Disclaimer] There are risks in the market, and investments should be made cautiously. This article does not constitute investment advice, and users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their specific situation. Invest at your own risk.
'Peter Schiff insists on faith! Strongly criticizes Trump's Bitcoin reserve plan: feared to trigger economic disaster' This article was first published in 'encryption city'