Bitcoin (CRYPTO: BTC) critic Peter Schff is warning that the strategic Bitcoin reserve is a tool to trick Americans into speculative losses.
What Happened: In an X post on Thursday, Schiff slammed the strategic Bitcoin reserve, stating that it exists solely to "scam" more Americans into buying crypto.
Schiff called out President Donald Trump, predicting that more Americans will lose money in crypto under his influence than in any other speculative mania in history.
Schiff specifically pointed to the TRUMP (CRYPTO: TRUMP) meme coin, which is already down 80% from its peak, calling it a "perfect example" of misplaced hype.
He argued that investors bought into TRUMP due to Trump's pro-crypto stance, expecting it to benefit from his popularity.
His remarks come as the President lauded the Bitcoin reserve at a pre-recorded address at the Blockworks Digital Assets Summit on Thursday.
Price Action: TRUMP is down 30% over the past month, while Bitcoin has dropped 10% and XRP eroded around 9% over the same time frame.
Why It Matters: This isn't Schiff's first jab at crypto.
In an X post on Jan. 30, Schiff teased the meme coin creation and stated that he has created something better—an ordinal, the Bitcoin equivalent of an NFT.
In another post on Jan. 19, Schiff suggested the Trump Media & Technology Group should follow Strategy's Bitcoin strategy but with TRUMP tokens.
He proposed issuing convertible notes to acquire more TRUMP, creating a self-reinforcing cycle of price appreciation and capital expansion.
Peter Schiff Slams Bitcoin ETFs, Calls Selling Gold For BTC 'Worst-Timed Trade In History'
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