Reuters: Trump Team Considers Bitcoin Reserve as Peter Schiff Warns of ‘Wasted Billions

The new crypto advisory council of President-elect Donald Trump is apparently thinking about creating a strategic bitcoin reserve, according to Reuters. Peter Schiff, a gold bug and economist, responded to this notion by sharing his thoughts on the idea of a Bitcoin reserve.

Trump's Transition Eyes Bitcoin Reserve, Schiff Responds to Fiscal Misstep

Industry insiders are excited to have a place at the table after Reuters revealed on Thursday that Donald Trump's transition team is considering creating a crypto council for the US. The frequently discussed notion of a strategic bitcoin (BTC) reserve, which has gained popularity in cryptocurrency circles since the beginning of this year, was also reviewed in the paper.

Many are now pleading with Trump to give the bill that Republican Senator Cynthia Lummis had introduced—which called for a U.S. strategic Bitcoin reserve—consideration. As of Nov. 21 at 2 p.m. Eastern Time, there is a 46% chance that Trump will take action to establish such a reserve, according to Polymarket bettors. As the discussion grew, Bitcoin critic Peter Schiff didn't hold back on social media, offering his thoughts and showing his contempt.

Schiff stated:

In addition to spending billions of taxpayer dollars on bitcoin, the creation of a U.S. bitcoin reserve would divert funds from the very industries the country needs to develop in order to expand its economy, lessen its trade imbalance, cut down on budget deficits, and lower inflation.

Schiff's remarks caused a commotion, as was to be expected, but many people disagreed with him. One member on X stated, "By adding bitcoin to the balance sheet, the U.S. dollar will strengthen and interest rates can decline without needing to be stated or the yield curve controlled down." Another clever commenter added, "But the thesis is to sell gold and buy bitcoin." No public funds. In response, another critic of Schiff's remark said:

Enter the loser: A tiny portion of a bitcoin is being used to pay down $35 trillion in national debt.

Schiff's cynicism appears to be out of step with bitcoin's expanding significance in international finance as it approaches the $100,000 milestone. Bitcoin's momentum indicates that it may become a potent economic instrument due to growing institutional interest and calls for strategic reserves. Schiff's rejection of bitcoin, according to critics, runs the risk of underestimating its revolutionary potential.

Some see bitcoin as a chance to transform economic policy and debt management, while Schiff cautions about misallocated resources. The gap between supporters and detractors grows as discussions over Bitcoin reserves gain momentum. The case that bitcoin could support fiscal stability, however, is stronger than ever as its tenacity and uptake pick up speed.