Peter Schiff Criticizes Bitcoin as Treasury Reserve Asset Proposal
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Bitcoin and Political Maneuvering
In a recent post on X, Schiff criticized those who anticipate Trump using taxpayer money to buy and hold Bitcoin as a Treasury reserve asset. He remarked, "This is why the U.S. was never intended to be a democracy," drawing a parallel between Bitcoin's potential reserve status and Biden's student loan forgiveness promise.
These remarks were in response to rumors within the cryptocurrency community suggesting that Trump might announce Bitcoin as a strategic reserve asset at the upcoming Bitcoin 2024 conference. A cryptic post by Senator Cynthia Lummis (R-Wyo.) also fueled these speculations. However, the cryptocurrency prediction market Polymarket currently sees only a 29% chance of this happening.
Market Sentiment and Poll Results
Schiff's comments follow his recent poll questioning the resilience of Bitcoin HODLers in a potential market downturn. He asked if long-term investors would sell their holdings if Bitcoin's value dropped below $15,000, an 80% decline from its 2024 high. Despite this hypothetical scenario, about 89% of respondents stated they would continue to hold their Bitcoin.
Schiff’s Ongoing Criticism
A staunch critic of Bitcoin, Schiff has consistently expressed skepticism about the cryptocurrency's long-term viability. He has also recently voiced doubts about the potential success of Kamala Harris as the Democratic presidential nominee following President Biden's withdrawal from the 2024 race.
Current Market Status
As of the time of writing, Bitcoin was trading at $64,248.61, experiencing a 2% drop in the last 24 hours. Despite the dip, the cryptocurrency remains a focal point of debate among investors and critics alike, with significant attention on its potential role in the U.S. Treasury.