According to Decrypt, economist and crypto critic Peter Schiff has sparked a debate regarding the U.S. government's Bitcoin strategy by urging President Joe Biden to sell all federally held Bitcoin. Schiff argues that liquidating these reserves could help reduce the 2024 budget deficit and dismisses the idea of establishing a 'Strategic Bitcoin Reserve.' He expressed his views on Twitter, stating that selling the Bitcoin would not only generate funds to lower the budget deficit but also put an end to discussions about creating a potentially harmful reserve.
In response to Schiff's remarks, a Twitter user pointed out that former President Donald Trump had already revealed plans for a strategic Bitcoin reserve, prompting competitors to consider similar strategies. Schiff countered by clarifying that Trump had only committed to retaining existing Bitcoin reserves without acquiring more. He suggested that Biden's immediate sale of Bitcoin could prevent Trump from implementing such plans if he returns to office. Trump has previously proposed the idea of establishing a national Bitcoin stockpile.
Meanwhile, global trends indicate that countries like Russia, Brazil, and Poland are exploring their own Bitcoin reserves, highlighting the growing recognition of cryptocurrency as a hedge against inflation and geopolitical risks. Despite these developments, Schiff remains a staunch advocate for gold, dismissing Bitcoin's role in national finance. He has criticized Bitcoin exchange-traded funds (ETFs), arguing that they undermine the decentralized nature of cryptocurrency. Despite his critiques, Schiff's actions suggest a more nuanced relationship with Bitcoin, as he recently attempted to sell his own Bitcoin Ordinals collection amid Bitcoin reaching all-time highs. This move was seen by many as opportunistic, reflecting his tendency to profit from the asset he publicly criticizes.
