Schiff Brands Bitcoin 'Public Enemy #1' Amid Bitcoin Reserve Talks

Peter Schiff, a prominent gold advocate, has labeled Bitcoin a national security threat and “public enemy number one.” His criticism comes amid growing discussions among U.S. federal and state governments about the potential creation of a Bitcoin reserve.

Schiff’s Concerns Grow Amid Trump and Senator Lummis’s Bitcoin Reserve Plans

On December 8, Schiff expressed his concerns in an X post, emphasizing that while it’s one thing for individuals to spend their money on Bitcoin, it crosses a serious line when government officials begin using public funds to invest in it.

His comments were met with widespread opposition, including a pointed critique from Dan Held, former Head of Marketing at Kraken. Held highlighted Schiff's shifting stance on Bitcoin, noting that Schiff had initially claimed Bitcoin would never succeed, then admitted it had succeeded somewhat but would eventually fail, and now argues it poses a major threat to the U.S. government.

Schiff’s concerns are directly tied to ongoing proposals led by Wyoming Senator Cynthia Lummis and the incoming Trump administration.

In July 2024, Senator Lummis first introduced the Bitcoin Act, which proposed that the U.S. Treasury acquire one million Bitcoin over time. The goal was to hold approximately 5% of the total Bitcoin supply, intending to establish a government-backed Bitcoin reserve similar in scope to the country's gold reserves.

With Trump's return to office as the 47th president of the U.S., Lummis's proposal gains new momentum. Trump has supported a Bitcoin reserve, having outlined his vision at a Bitcoin conference in Nashville in July 2024.

He suggested that such a reserve would reinforce the nation's financial stability and increase its influence within the global financial system.

This growing support for a federal Bitcoin reserve has stirred debate, particularly among experts and analysts. Michael Saylor, the co-founder of MicroStrategy, has even suggested the U.S. should abandon gold entirely in favor of Bitcoin.

MICHAEL SAYLOR: Dump all

US gold for 5M #Bitcoin—the trade is free. Demontize enemy gold reserves to zero while we take control of the World's Reserve Capital Network