Why does Peter Schiff call Strategic Bitcoin Reserve a cryptocurrency scam?

The famous economist and long-time skeptic of Bitcoin, Peter Schiff, has harshly criticized the proposed Bitcoin Strategic Reserve as a "scam" aimed at tricking Americans into investing their money in digital assets. Through a post on platform X, Schiff blamed Donald Trump for spreading inflated misinformation that could harm investors by driving them to bankruptcy. The cryptocurrency analyst mentioned that the meme coin $TRUMP has dropped 80% since its peak price even though Trump has a supportive belief in digital assets.

Schiff warns about financial risks in Trump's cryptocurrency Schiff stated that Trump is using his public support to deceive investors who do not realize they are facing extreme financial risks due to his cryptocurrency promotion. Peter believes that Trump's cryptocurrency promotion and the current market interest will cause more investors to lose money than any previous financial bubble. Despite launching as a political cryptocurrency last year, the meme coin $TRUMP is currently experiencing a rapid decline in market value. CoinMarketCap shows that TRUMP has decreased by 32.57% in value over the most recent month, with a market price of 11.08 dollars. Despite the string of losses, the meme coin continues to attract investors, showing a market value of 2.2 billion dollars in speculation. This asset has traded with a market volume of 509.56 million dollars in a day. Schiff warns against political influence in cryptocurrency Schiff opposes cryptocurrencies related to politics because he believes their value is not tied to essential monetary rules. According to Peter, many investors believe their political connections will lead to everlasting revenue growth, but he believes this belief is incorrect. In addition to his views on meme coins, Peter spoke out against government involvement in the cryptocurrency industry, which he sees as a waste of spending. In his view, Bitcoin does not function as a suitable long-term investment tool, and he opposes calls for government support of digital assets. After supporting the Strategic Bitcoin Reserve Fund, Trump told the audience of Blockworks that his administration will hold digital assets permanently rather than liquidate them immediately. Peter believes that this action will undermine the financial stability of the nation as digital assets are inherently unsafe for government investments. Schiff targets MicroStrategy for risky BTC strategy Since opposing official cryptocurrency projects, Peter has targeted private organizations investing in Bitcoin. Before changing this stance, he criticized MicroStrategy's Bitcoin plan due to the company's debt financing for significant BTC purchases. Peter pointed out that MicroStrategy faces a 55% drop in stock after November 2024, creating high risks in this company's large Bitcoin purchasing program. Schiff actively opposes the participation of cryptocurrencies while other investors debate its market value. Cryptocurrency advocates see it as a pathway to new investments, but Peter believes these market trends create dangerous bubbles that harm investors who buy in. Conclusion Schiff insists on opposing Bitcoin and notable cryptocurrency projects due to excessive speculation that will cause financial harm. According to Peter, the Trump administration's crypto-friendly initiatives will deceive investors into making inappropriate decisions, reaffirming his belief that Bitcoin is a dangerous financial gamble.