Peter Schiff: The Weakening Dollar is the Real Driving Force Behind Bitcoin's Surge
Bitcoin has recently soared to an all-time high, with its price breaking above $123,000 at one point, and its realized market cap surpassing $1 trillion, drawing widespread attention from the market.
Peter Schiff, CEO of Euro Pacific Bank and a prominent gold supporter, holds a critical view on this, believing that the rise of Bitcoin is not due to its intrinsic value but rather the depreciation of the dollar.
He points out that Bitcoin has set records only in terms of USD, not in euros or Swiss francs, indicating that the key factor driving Bitcoin's rise is the dollar's depreciation relative to other major currencies.
Schiff has long been skeptical of Bitcoin, viewing it as a speculative bubble in the cryptocurrency space, and warns that the current surge may merely be a “Ponzi scheme” built on a house of cards.
He also specifically criticizes the recently passed “GENIUS Act” by the US Congress, suggesting that the bill is merely a tool for special interest groups to leverage regulatory frameworks to hype Bitcoin, aiming to profit early investors while the general public may bear the risks.
Meanwhile, Bitcoin's strong performance has attracted a wide range of institutional participants, including pension funds, retail investors, and publicly listed companies (such as Michael Saylor's Strategy and Metaplanet), further boosting market demand.
Therefore, although some investors interpret Bitcoin's rise as a hedge against dollar depreciation, Schiff argues that it actually exposes the fragility of the US economy.
He warns that the Federal Reserve's low interest rate policies and inflationary pressures are undermining the dollar's international standing, while the frenzy around Bitcoin could further exacerbate speculative bubbles in financial markets.
Schiff's criticism serves as a wake-up call, reminding investors to examine the macroeconomic risks that may be hidden behind the pursuit of digital wealth offered by Bitcoin.
What is your view on Bitcoin's record price performance? Is it a manifestation of its intrinsic value and a strong proof of its potential, or is it market speculation and a fleeting bubble under a weak dollar?
