Well-known Bitcoin critic and economist Peter Schiff has once again sparked controversy by calling on President Joe Biden to sell all US government BTC holdings.
Schiff argues that this would not only help reduce the 2024 budget deficit, but would also end any speculation about a strategic BTC reserve for the US.
Call for liquidation of US Bitcoin holdings
In a recent tweet, Schiff wrote:
“The only sensible thing Biden can do before he leaves is to sell all the Bitcoin the U.S. government currently owns. The proceeds from this could reduce the budget deficit and end the nonsense about a harmful ‘Strategic BTC Reserve.'”
This call followed earlier statements in which Schiff called BTC “public enemy number one.” His remarks were met with fierce opposition from the crypto community. One user on X commented:
“Then we’ll just buy more at a higher price. Trump has already changed the game; our competitors are now working on plans for their own strategic BTC reserves. Game theory has already won, Peter.”
Schiff rejected this criticism, stressing that former President Donald Trump never promised to buy BTC, but merely to keep existing government reserves.
Then we'd just have to buy in at a higher price.
Trump already let the cat out of the bag, now our competitors are working out plans for their own strategic #Bitcoin reserves.
Game theory already won this Peter.
Gold's market cap doesn't stand a chance against Bitcoin.— ⚡BitBuyer313⚡ (@BitBuyer313) December 9, 2024
Trump’s plans for a BTC reserve
During his election campaign, Trump announced his intention to build a national strategic BTC reserve using confiscated government BTC.
“The policy of my administration will be to retain 100% of all BTC that the United States government currently owns or acquires in the future. This will serve as a core component of the Strategic National BTC Reserve,” Trump said at the time.
Schiff called this a strategic mistake and argued that Trump should have kept his plans secret until he was actually in office. Otherwise, Biden now has the opportunity to liquidate the reserves before Trump takes office.
International Trends: The Rise of Strategic Bitcoin Reserves
While Schiff continues to oppose a BTC reserve, other countries are showing interest in the concept. Russia is exploring the creation of a strategic Bitcoin reserve as part of its de-dollarization strategy. Canada and Poland are also making plans to use Bitcoin reserves as a hedge against economic instability.
These global trends underscore the growing recognition of Bitcoin as a financial instrument with potential. Proponents see it as a way to ensure financial independence and combat inflation, especially in countries affected by US dollar dependence.
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