Peter Schiff Compares Hopes That Trump Declares Bitcoin As Treasury Reserves' With Biden's Student Loan Forgiveness: Claims 'Buying Votes' Is Why US Wasn't Meant To Be A Democracy

Economist Peter Schiff slammed Bitcoin BTC/USD investors’ expectations of the apex cryptocurrency being designated as a strategic reserve asset, likening it to political vote-buying tactics.

What Happened: On Tuesday, Schiff took to X to criticize those who hope for former President Donald Trump to use taxpayer money to buy and hold Bitcoin as a Treasury reserve asset, equating it to President Joe Biden’s promise to forgive student loans to win votes.

“This is why the U.S. was never intended to be a democracy,” Schiff remarked.

Bitcoin #HODLers are hoping #Trump buys their votes by promising to use taxpayer money to buy and hold #Bitcoin as a Treasury reserve asset. This is similar to #Biden buying votes by promising to forgive student loans. This is why the U.S. was never intended to be a democracy.

— Peter Schiff (@PeterSchiff) July 24, 2024

The remark was in reference to rumors floating in the cryptocurrency community that Trump would announce Bitcoin as a strategic reserve asset for the U.S. at the upcoming Bitcoin 2024 conference. A cryptic post by Sen. Cynthia Lummis (R-Wyo.) also prompted enthusiasts to look into this possibility.

Bettors on the cryptocurrency prediction market, Polymarket, however, believe there is only a 29% chance of this happening as of this writing.

See Also: Peter Thiel, Founders Fund Lead $11M Investment In Pudgy Penguins Parent Company: ‘Excited to Drive the Consumer Crypto Revolution Forward’

Why It Matters: Schiff’s remarks come in the wake of his recent poll questioning the resolve of Bitcoin HODLers in the face of a potential market downturn. He asked if long-term investors would sell their holdings if Bitcoin’s value dropped below $15,000, marking an 80% collapse from its 2024 record-high. About 89% of the respondents said they would continue to hold the asset.

The staunch Bitcoin critic had earlier expressed skepticism about the potential success of presumptive Democratic presidential nominee Kamala Harris following President Joe Biden‘s withdrawal from the 2024 presidential race.

Price Action: At the time of writing, Bitcoin was trading at $64,248.61, following a drop of 2% in the last 24 hours, according to data from Benzinga Pro.

Photo Courtesy: Wikimedia Commons

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.