- Schiff questions why central banks prefer gold over Bitcoin today.
- He says crypto investors ignore risks from rising interest rates.
- Markets fell: stocks, bonds, and the dollar dropped sharply this week.
Economist and well-known Bitcoin critic Peter Schiff raised an interesting question on social media this week. He asked a simple, yet loaded question, if Bitcoin truly is the heir apparent to global finance, why are foreign central banks actively stocking up on gold instead of Bitcoin as they prepare for a world where the US dollar may no longer be the main global currency?
When a user claimed that banks are buying Bitcoin, Peter replied and said,
“No they are not. Some of their customers are. They are just making money off them.”
Schiff Challenges Bitcoin Narrative as Central Banks Stockpile Gold
Peter again took a jab at the crypto market. This time, the critic called crypto and tech investors “ignorant” for ignoring the risks of rising interest rates. Even though Bitcoin recently jumped to a new high of $111,000, Schiff remains firmly against it, warning that it’s a dangerous trap for investors. He added that with long-term interest rates likely to keep climbing, it won’t be long before the breaking point for crypto is revealed.
Related: BlackRock’s IBIT Bitcoin ETF Crushes All Competitors In Daily U.S. Fund Inflows
Schiff shared his concerns about the US financial markets. The US dollar index fell by around 2% this week, closing just above 99. Yields on US government bonds also jumped, with 10-year bonds ending above 4.5% and 30-year bonds above 5%. Schiff predicted that bond prices might fall even further next week.
U.S. Financial Health Concerns: Schiff Blames Spending, Debt Downgrade
It wasn’t a good week for US stocks either. The S&P 500 index dropped around 2.5%, marking a week where the dollar, stocks, and bonds all declined, while gold and silver prices rose.
Schiff blamed two major events for the market troubles. First, the US House of Representatives passed a large spending bill — one Schiff sarcastically called the “big beautiful bill.” He criticized it for increasing government debt instead of reducing it, despite earlier promises of budget cuts.
Related: James Lavish Drops Truth Bomb: Bitcoin’s Future Path Will Shock Those Stuck In Old Cycle Thinking
Second, credit rating agency Moody’s downgraded US government debt by one notch. This move followed similar downgrades by Standard & Poor’s and Fitch in the past. Schiff argued that the US government’s financial problems have been obvious for a while and that this downgrade was long overdue.
On a positive note, Schiff said that precious metals like gold, silver, and platinum could perform well next week.
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