Peter Schiff, an economist and longtime Bitcoin critic, just took another shot at Donald Trump’s U.S. Bitcoin Reserve plan.
After Bitcoin prices dropped during a recent market crash, Schiff jumped on X (formerly Twitter) to say the whole Bitcoin reserve plan is already in the red.
Schiff questioned the timing and wisdom of the reserve plan, which was launched on March 6, 2025. He claimed the U.S. would have been better off investing in gold instead of Bitcoin.
According to Schiff, “So far, the value of the Bitcoin held in that reserve has declined by over 12%.” He argued that gold prices have gone up slightly since then, and the U.S. could have made a 2% gain rather than a 12% loss.
“Had the U.S. sold it and added to our gold reserve, not only would we have avoided that loss, but we would now have a 2% gain,” he wrote. Schiff is all about keeping things old-school with gold, especially when things in the economy look shaky.
Schiff repeated his long-standing belief that gold is a safer bet during uncertain times. He also brushed off a user’s comment about how the Biden administration missed out on Bitcoin gains years ago.
In response, Schiff said such arguments are “irrelevant” and that performance should only be judged from the moment the reserve officially began.
This was not Schiff’s only concern. In another post, he warned that Trump’s rising tariff plans, especially the proposed 50% tariff on Chinese goods, could lead to a recession.
He believes investors are underestimating the potential damage these trade moves might cause. Schiff even said, “The stock market hasn’t priced in the economic damage these tariffs could create.”
He went further to say the U.S. could face its worst recession since the Great Depression. Even with recent losses in crypto and stock markets, Schiff claimed that equities are still overvalued.
He warned that a 50% drop might still not reveal the true risks. When asked whether the Federal Reserve could stop a recession, Schiff responded sarcastically, saying only the Fed could do it, but it would require printing more money. That, he warned, could lead to runaway inflation.
Even though Bitcoin bounced back to $80K, Schiff says investors shouldn’t get too excited. He thinks the economy still looks rough, and people should be careful.
Also Read: How bad would crypto bleed if Trump hits China with 50% tariff?
