Peter Schiff Calls Bitcoin "Public Enemy Number One"
Euro Pacific Funds chief Peter Schiff has intensified his criticism of Bitcoin, declaring the cryptocurrency a "national security threat" and "public enemy number one" in a recent social media post.
The prominent gold advocate expressed concerns about government officials potentially using public funds to purchase Bitcoin. "It's one thing when private citizens voluntarily waste their own money buying Bitcoin. But it crosses the line when they bribe government officials to squander the public's money buying it," Schiff warned about on X (formerly Twitter).
His comments appear to reference discussions around creating a strategic Bitcoin reserve in the United States. The debate has gained traction following statements from political figures, including Donald Trump's crypto plans who proposed maintaining government-held Bitcoin if re-elected.
Schiff argues that Bitcoin poses risks by redirecting capital from productive sectors of the economy. "The threat is that the government squanders the public's money buying it, in the process misdirecting more capital to Bitcoin and blockchain-related business at the expense of productive businesses," he explained.
The statement sparked varied responses from the cryptocurrency community. Erik Voorhees, a Bitcoin advocate, responded sarcastically: "Yeah, Bitcoin is the problem, not the $36 trillion of debt." Meanwhile, Nate Geraci, president of The ETF Store, noted how Bitcoin's perception had evolved "from sinking ship to national security threat" in just 11 months.
This latest criticism comes as Bitcoin breaks records, and institutional adoption continues to grow. Bitcoin ETFs have reportedly exceeded Satoshi Nakamoto's estimated 1.1 million BTC holdings.
While some states like Florida are considering their own Bitcoin reserves for early 2025, the federal government's potential involvement remains controversial. Current betting markets suggest a 27% probability of the U.S. establishing a national Bitcoin reserve in the coming months.
Schiff, known for labeling Bitcoin as the "biggest bubble in history," maintains his stance despite the cryptocurrency's price performance consistently contradicting his predictions.