Bitcoin Enemy Peter Schiff Made a Statement After the Great Rise: He Evaluated the US Government’s 1 Million BTC Purchase Scenario!

Economist and long-time Bitcoin’e Skeptic Peter Schiff issued a strong warning against the US government creating a Bitcoin reserve, calling the idea a “total disaster” that could plunge the country into hyperinflation and a financial collapse.

Schiff’s comments, RFK Jr. like crypto para It comes in response to recent discussions, led by pro-government figures, about the possibility of the US government acquiring a significant Bitcoin reserve.

In his latest statement, Schiff theorized that if the United States purchased 1 million Bitcoins, such a large purchase would push Bitcoin prices to unprecedented highs. According to Schiff, this will prompt existing Bitcoin holders, currently “worth millions or billions,” to cash out their holdings. This, he argued, would result in a destabilizing cycle in which Bitcoin prices would fall and the US government would be forced to step in to buy more Bitcoin to stabilize the market.

“To prevent the price from falling, the United States will need to print more dollars to continue buying Bitcoin,” Schiff said. He predicted that this constant buying would devalue the dollar and lead to an inflationary spiral that could destroy the currency’s purchasing power. “A reserve of something you can never sell and have to constantly buy is worthless as a reserve,” Schiff warned, adding that such a policy would likely trigger hyperinflation and make the dollar “completely worthless.”

Schiff noted that ultimately the collapse of the dollar would force the government to liquidate Bitcoin holdings to cover national spending. Schiff warned that this mass sell-off could lead to Bitcoin’s own collapse and that those who keep their savings in Bitcoin or dollars could be “completely wiped out.”

While some advocates, including prominent crypto supporters, see the US Bitcoin reserve as a step towards financial modernization, Schiff’s analysis presents a completely different scenario. Schiff believes it is unlikely that the US government would adopt such a policy, given the potentially devastating economic consequences.

*This is not investment advice.