Peter Schiff: Bitcoin Reserve Is The 'Worst Monetary Mistake' US Could Make

In an interview at the New Orleans Investment Conference on Thursday, Peter Schiff, chief market strategist of Euro Pacific Asset Management, expressed skepticism about cryptocurrency while remaining bullish on gold.

Speaking with Kitco News, Schiff maintained a positive outlook for gold prices, noting that the precious metal is in “uncharted territory” with “no resistance.”

He stated, “I don’t think Gold’s going back to 2000,” saying it is off to “much higher levels without any resistance.”

Schiff predicted that gold prices could potentially double or triple from current levels.

Regarding the underperformance of gold mining stocks compared to gold itself, Schiff attributed this to a lack of investor conviction.

He suggested that retail investors might be distracted by Bitcoin ETFs or companies like MicroStrategy MSTR.

On the topic of Bitcoin BTC/USD, Schiff strongly criticized Sen. Cynthia Lummis‘s (R-WY) proposal to sell U.S. gold reserves to buy Bitcoin.

He called the idea “treason” and the “worst monetary mistake” the U.S. could make, arguing that Bitcoin is not a viable reserve asset due to its market volatility.

He highlighted that Bitcoin was supposedly created as an “alternative to government” but has become “completely dependent on government because it’s the government that’s creating all the demand.”

Schiff also expressed concerns about MicroStrategy’s Bitcoin-buying strategy, predicting it could end in bankruptcy.

“The only way this is going to end is in the bankruptcy of MicroStrategy and in a MicroStrategy bankruptcy where all of the creditors force the liquidation of all the Bitcoin, Bitcoin also collapses,” Schiff prophesized.

While Schiff admitted to regretting not buying Bitcoin when it was around $1, he emphasized that this doesn’t mean he would buy it now.

Previously, Schiff repeatedly expressed regret about not buying Bitcoin to bet on “other people being dumb.”

Read Next: