Bitcoin Reserve Could Lead to Economic Catastrophe
Renowned economist Peter Schiff has issued a stark warning about the potential consequences of the U.S. government establishing a Bitcoin reserve. He predicts that such a move would ultimately lead to economic catastrophe.
Schiff's concerns stem from the potential for a self-perpetuating cycle of price inflation and government intervention. If the government were to begin buying Bitcoin, it would likely need to continuously increase its holdings to maintain the illusion of stability. This would drive the price of Bitcoin so high that investors would eventually cash out, triggering a market crash.
To keep up with the rising price of Bitcoin, the government would be forced to print more dollars, leading to hyperinflation and a severe devaluation of the currency. This, according to Schiff, would ultimately destroy both the dollar and Bitcoin.
Schiff further argues that the narrative of Bitcoin overtaking gold as a stable store of value is increasingly unlikely, especially considering the recent surge in gold's market cap compared to Bitcoin's.
The debate surrounding Bitcoin's viability as an institutional asset is likely to continue, with Schiff's criticism adding fuel to the fire. The upcoming Future of Digital Assets event on November 19th will provide a platform for further exploration of this complex issue.