Prominent gold advocate and vocal critic of Bitcoin, Peter Schiff, stated in a recent interview that Bitcoin will never become the world’s reserve currency. He argued that the cryptocurrency industry is seeking government regulation and financial support not to restrict itself but to legitimize its legal status. According to Schiff, the real purpose behind the demand for regulatory clarity is to gain government approval so Bitcoin supporters can claim their asset is officially recognized. He added that political backing stems from financial interests rather than monetary principles.
Schiff claimed that early Bitcoin holders used their earnings to influence politicians, including former President Donald Trump, to publicly endorse Bitcoin. He described proposals for a U.S. Bitcoin Strategic Reserve as a “Bitcoin buyout fund” designed to prop up the market with public money. Tucker Carlson contributed to the discussion by noting that the decline in the U.S. dollar’s purchasing power and its geopolitical use highlight the need for a new global reserve asset, questioning why Bitcoin or stablecoins like Tether cannot fulfill this role.
Reiterating his long-held view, Schiff emphasized that gold is real wealth, whereas Bitcoin and fiat currencies are trust-based alternatives whose value depends on speculation. He stated that Bitcoin’s primary aim is to generate more dollars rather than serve as a stable financial store. Schiff further argued that Bitcoin is an unsuitable reserve asset for central banks due to its price volatility, which could destabilize markets. While some government and sovereign funds have made minor investments in Bitcoin, these are on weak grounds and under performance pressure.
Schiff likened Bitcoin to past financial manias such as tulip bulbs or Beanie Babies, asserting that it is not a genuine financial asset but a speculative fad that could collapse like stocks during a financial crisis.
Source: bitcoinmagazine
