Peter Schiff Slams Trump and Saylor’s ‘Never Sell Bitcoin’ Philosophy as BTC Price Surges to $70K

Bitcoin [BTC], the king of cryptocurrencies, often finds itself in the crosshairs of traditional finance critics. Among the most vocal is Peter Schiff, a well-known gold advocate and Bitcoin skeptic. Recently, Schiff didn’t hold back, taking aim at prominent Bitcoin proponents, including former President Donald Trump and MicroStrategy’s Michael Saylor, for their unwavering ‘never sell Bitcoin’ stance. But even as Schiff voiced his doubts, Bitcoin’s price demonstrated remarkable resilience, surging to $70,000 and hinting at a potential bull market resurgence. Let’s dive into Schiff’s latest critique and explore why it might not be making waves in the ever-optimistic crypto sphere.

For years, Peter Schiff has been a consistent voice questioning the long-term value and viability of Bitcoin and the broader digital asset space. He rarely misses an opportunity to express his skepticism, often contrasting crypto with his preferred asset, gold. His latest remarks have sparked debate once again, particularly as they target influential figures within and outside the crypto community.

Peter Schiff vs. Trump & Saylor: What’s the Beef?

Schiff’s recent criticism is directed at the ‘never sell your Bitcoin’ philosophy championed by figures like Donald Trump and Michael Saylor. This strategy, popular among Bitcoin maximalists, suggests that Bitcoin’s value will only increase over time, making selling a losing proposition. However, Schiff publicly questioned the logic behind this approach, taking to X (formerly Twitter) to express his bewilderment:

“Both @saylor and #Trump say “never sell your #Bitcoin.” If that’s true and no one who buys Bitcoin ever sells any, what’s the point of owning it? What’s the appeal of living in poverty, dying with a big stack of Bitcoin, with successive generations of heirs repeating the process?”

Schiff’s argument boils down to a fundamental question: if Bitcoin is never meant to be sold, what practical purpose does it serve? He paints a picture of Bitcoin holders accumulating wealth they can never use, questioning the intrinsic value of an asset if its primary utility is simply holding it indefinitely.

Is Bitcoin a Debt-Increasing Tool in Schiff’s Eyes?

Peter Schiff’s critique extends beyond the ‘never sell’ philosophy. He also voiced strong opposition to the idea of governments borrowing money to invest in Bitcoin. Senator Cynthia Lummis, a known crypto advocate, has previously suggested the potential benefits of investing in Bitcoin, even through borrowing. Schiff, however, sees this strategy as deeply flawed.

He specifically targeted Lummis’s proposition of borrowing billions to purchase Bitcoin, arguing that it would only worsen the national debt and fuel inflation. In his view, such an investment offers no tangible economic advantages. He stated:

“Wyoming @SenLummis claims that borrowing $70 billion to buy 1 million #Bitcoin is this generation’s Louisiana Purchase. The Louisiana Purchase almost doubled the size of the U.S. at a cost of 3 cents per acre. Borrowing billions to buy Bitcoin adds nothing but debt & #inflation.”

Schiff draws a sharp contrast between investing in Bitcoin and historical strategic investments like the Louisiana Purchase, which significantly expanded the United States. He argues that unlike such investments that yielded tangible benefits, investing in Bitcoin, especially with borrowed funds, only adds to financial risks and inflationary pressures without providing comparable returns to the real economy.

Unsurprisingly, Schiff’s remarks sparked considerable backlash from the crypto community. Daniel Nita, a popular YouTuber and crypto commentator, countered Schiff’s argument on X, explaining a common Bitcoin investment strategy:

“You never sell your Bitcoin you hedge it and borrow against it. Not hard to understand…”

Nita’s response highlights a key aspect of Bitcoin investment that Schiff seems to overlook: the ability to leverage Bitcoin holdings without selling them. Instead of selling, investors can use their Bitcoin as collateral to borrow fiat currency, accessing liquidity while retaining their Bitcoin assets. This strategy allows for both potential upside from Bitcoin’s price appreciation and access to funds for other investments or expenses.

Schiff’s Skepticism vs. Bitcoin’s Bullish Momentum

Despite Peter Schiff’s persistent criticism, Bitcoin’s market performance remains largely unfazed. In another post, Schiff further elaborated on his views, expressing skepticism about using Bitcoin to manage national debt without causing inflation, as shown in the image he shared:

However, the crypto market, known for its volatility and resilience, appears to have shrugged off Schiff’s concerns. Bitcoin’s price action tells a different story. As of the latest update, Bitcoin has not only maintained its ground but has also climbed back to the $70,000 level. Furthermore, with the Relative Strength Index (RSI) hovering around a healthy 67, technical indicators suggest that Bitcoin might be gearing up for another significant bullish run.

Here’s a quick look at Bitcoin’s recent price movement:

• Price Resilience: Bitcoin rebounded strongly to $70,000 despite Schiff’s negative comments.
• Bullish Signals: An RSI of 67 indicates strong buying momentum, suggesting a potential bull rally.
• Market Indifference: The crypto community and market participants seem largely unaffected by Schiff’s critiques.

Will Schiff Ever Be a Bitcoin Believer?

Peter Schiff’s skepticism towards Bitcoin is deeply rooted in his traditional economic views and preference for gold. While he raises valid questions about Bitcoin’s utility and long-term value proposition, particularly the ‘never sell’ philosophy, his arguments often fail to resonate within the crypto community. The ability to hedge and borrow against Bitcoin, as pointed out by Daniel Nita, offers practical use cases beyond simply holding the asset indefinitely.

Moreover, Bitcoin’s price resilience in the face of criticism and its demonstrated potential for bullish rallies highlight the strong underlying belief in its value as a digital asset and store of value. Whether Schiff’s persistent skepticism will eventually give way to acceptance, or if Bitcoin’s continued growth will further solidify the divide between traditional finance and the crypto world, remains to be seen. For now, the crypto market continues to march to the beat of its own drum, seemingly unfazed by even the loudest critics.