29-6-2025 – Renowned US economist Peter Schiff has launched a broadside against President Donald Trump’s fervent embrace of Bitcoin, warning that the cryptocurrency’s rise could spell disaster for the US dollar and the broader economy. Schiff’s admonition, aired through a post on X, casts a shadow over Trump’s bullish stance on digital assets, which the president has championed both personally and in his official capacity.
The economist argues that the act of liquidating US dollars to acquire Bitcoin undermines the greenback’s global dominance, creating economic ripples that could destabilise the nation’s financial foundations. Schiff’s concerns centre on the potential erosion of demand for the US dollar as investors and institutions pivot towards Bitcoin. He contends that this shift diverts resources away from productive economic activities, branding the trend as detrimental to the country’s long-term prosperity.
This stands in stark contrast to Trump’s recent assertions, where he lauded Bitcoin as a transformative force, crediting it with job creation and robust price performance that outpaces traditional stock markets. Schiff, however, sees this as a perilous miscalculation, arguing that the conversion of dollars into Bitcoin exerts undue pressure on the currency’s value. The Trump administration’s ambitious plans to establish a Strategic Bitcoin Reserve, funded through criminal and civil forfeiture, have further fuelled Schiff’s apprehensions. Several US states are following suit, allocating capital to amass their own Bitcoin reserves, mirroring the federal initiative.
Meanwhile, Trump’s personal ventures have leaned heavily into the crypto space, with Trump Media securing $2.3 billion through a private placement to bolster its Bitcoin treasury operations. Schiff views these moves as risky, suggesting that swapping dollars for Bitcoin on such a scale could weaken the nation’s economic bedrock. Beyond economic concerns, Schiff has accused Trump of leveraging Bitcoin’s allure to court wealthy cryptocurrency donors, framing the president’s enthusiasm as a calculated bid to advance his family’s financial interests.
The controversy intensified following a high-profile White House dinner in May, where Trump hosted top holders of the TRUMP meme coin, an event that reportedly cost attendees nearly $150 million to secure their seats. Critics, including Schiff, allege that the Trump family has reaped over $1 billion in profits from their cryptocurrency ventures, raising questions about the motives behind the president’s crypto advocacy.
Adding fuel to the fire, Trump’s World Liberty Financial (WLFI) recently clinched a $100 million investment from Aqua 1 to drive expansion in decentralised finance (DeFi). Donald Trump Jr has defended the family’s pivot to Bitcoin, citing exclusion from traditional banking systems as a driving force behind their crypto ventures. Yet Schiff remains unconvinced, warning that Trump’s intertwining of political influence and cryptocurrency promotion risks prioritising personal gain over national economic stability, a charge that continues to spark heated debate in financial and political circles alike.
