Peter Schiff Criticizes Proposed Bitcoin Reserve Bill

According to ShibDaily, American economist and well-known Bitcoin critic Peter Schiff has expressed concerns about the proposed Bitcoin Reserve bill, highlighting its lack of support in Congress. Schiff shared his views on the proposed legislation, which aims to establish a national Bitcoin reserve, on social media platform X. He noted that while the bill has received considerable backing from the online crypto community, it has not garnered the same level of support on Capitol Hill. The bill, known as the BITCOIN Act, has not attracted any co-sponsors apart from its author, Senator Cynthia Lummis. Representative Ro Khanna is the only other member of Congress who has shown support for the bill. The Bitcoin Reserve bill suggests that the Treasury Department should acquire one million Bitcoin over a five-year period, with the intention of holding it for at least 20 years unless it is used to reduce federal debt. In June, President-elect Donald Trump expressed strong support for the creation of a strategic national Bitcoin reserve during his appearance at the Bitcoin Conference in Nashville. His endorsement has been credited with contributing to the rise in Bitcoin's value, which currently exceeds $96,000. Earlier this month, Schiff argued that if the government were to purchase one million Bitcoin, the resulting price increase could lead long-term holders to sell their assets. He suggested that such a scenario could trigger a market crash and force the U.S. government to print more dollars to buy additional Bitcoin to stabilize its price. Schiff believes that this strategy would ultimately reduce the value of the government's Bitcoin holdings, stating, "In the end, Bitcoin would have succeeded in destroying the dollar." He added that this potential outcome is a key reason why he believes a national Bitcoin reserve will not be established.