Peter Schiff Calls Bitcoin “Public Enemy Number One”

Renowned gold advocate and longtime Bitcoin skeptic Peter Schiff has once again made remarks on the flagship cryptocurrency.

Taking on X (formerly Twitter), Schiff declared that “Bitcoin has become a national security threat.”

Peter Schiff Slams Bitcoin

In his post, Schiff called Bitcoin a national security threat, citing its use to bribe the government, and added that buying BTC is a waste of money.

“It’s one thing when private citizens voluntarily waste their own money buying Bitcoin. But it crosses the line when they bribe government officials to squander the public’s money buying it. Bitcoin is now public enemy number one,” Schiff stated.

This provocative statement comes amidst growing discussions about Bitcoin’s role in the global economy. Its increasing adoption by institutional investors is also a significant development, Bitcoin ETFs (exchange-traded funds) are reported to have surpassed Satoshi Nakamoto’s estimated 1.1 million BTC holdings.

Schiff’s criticism centers on his belief that Bitcoin diverts capital away from productive sectors, exacerbating economic inefficiencies. He elaborated on this in a subsequent post.

“…Bitcoin has become a real threat, not to gold but to the US. The threat is that the government squanders the public’s money buying it, in the process misdirecting more capital to Bitcoin and blockchain-related business at the expense of productive businesses,” he added.

With a history of championing gold as a store of value, Schiff recently called Bitcoin’s rise the “biggest bubble in history.” While Schiff acknowledges Bitcoin’s appeal as an investment, he views it as inherently flawed, lacking the intrinsic value he believes gold offers.

Despite his persistent criticism, Bitcoin’s price and adoption have defied his predictions, much to the amusement of cryptocurrency proponents. Nate Geraci, president of The ETF Store, responded wryly to Schiff’s recent remarks.

“In only 11 months, Bitcoin evolved from sinking ship to national security threat… You love to see it,” Geraci quipped.

Bitcoin Debate Heats Up

Schiff’s labeling of Bitcoin as a “national security threat” taps into broader concerns about the cryptocurrency’s role in financial markets and governance. Critics of Bitcoin often cite its potential misuse in illicit activities and its perceived competition with sovereign currencies. Proponents, on the other hand, argue that it represents financial innovation and a hedge against inflation.

As the debate around Bitcoin continues, Schiff remains an influential voice—albeit one that many in the cryptocurrency community love to counter. His consistent focus on Bitcoin, even as he champions gold, reflects the growing prominence of digital assets in economic discourse.

Meanwhile, Schiff’s position has resonated with some, including X user JB, who echoed his concerns by reposting Schiff’s original message verbatim. However, many others in the cryptocurrency space dismiss these claims, pointing instead to broader economic issues. Responding to Schiff’s assertion, Erik Voorhees, a prominent Bitcoin advocate, commented sarcastically.

“Yeah, Bitcoin is the problem, not the $36 trillion of debt,” the user remarked.

Schiff’s remarks also follow his sarcastic suggestion that Trump Media should invest in Bitcoin. Despite his critiques of Bitcoin, it is worth noting that the Bitcoin critic is one of the people who endorsed Donald Trump for the 2024 US presidential race, further adding layers of complexity to his public persona.