- Bitcoin treasury funded by Trump Media’s $2.3 billion raise sparks economic stability concerns.
- Schiff warns U.S. dollar demand may fall as BTC gains traction through Trump’s endorsements.
- Trump’s family allegedly earned over $1 billion from crypto; $150 million spent at meme dinner.
Renowned U.S. economist Peter Schiff has criticized President Donald Trump for his growing support of Bitcoin. Schiff argues that Trump’s stance endangers the U.S. dollar, both personally and politically. The economist warns that the dollar’s status as a global reserve currency could suffer under Trump’s Bitcoin-friendly agenda.
Just a day after Trump praised Bitcoin’s positive impact on the U.S. economy, Schiff posted on X, claiming BTC erodes the U.S. dollar’s strength. According to Schiff, rising BTC demand driven by U.S. adoption undermines the traditional financial foundation of the country.
Trump Backs Bitcoin as Dollar Relief
Schiff emphasized the risks of converting U.S. dollars into BTC. He stated that the act of selling dollars to buy crypto will lower demand for the dollar, potentially destabilizing its global appeal. Schiff’s views sharply contrast with Trump’s belief that BTC alleviates pressure on the currency by offering an alternative.
While the federal government does not intend to sell dollars directly for BTC, it plans to fund its Strategic Bitcoin Reserve through forfeitures. Several states are also joining in by launching their reserves, allowing them to hold BTC using state-level capital allocations and diversifying their financial portfolios.
Trump Media has managed to collect the amount of $2.3 billion in cash to build a BTC treasury through private placements. According to Schiff, this move as economically risky, arguing that converting raised capital into Bitcoin could harm long-term economic stability. Schiff said shifting market fundamentals due to these tactics may lead to serious problems.
Also Read: Bitcoin Transforms into Digital Gold: U.S. Set to Dominate the Global Market
Trump’s Bitcoin Push Sparks Political Debate
Trump defended his support for BTC, saying it boosts job creation and economic diversity. He highlighted BTC’s growing role in commerce and positioned it as a way to ease reliance on the dollar. His remarks appear aligned with the Triffin Dilemma’s themes on reserve currency conflict.
According to digital researcher Anders X, Trump’s comments subtly referenced the dilemma of sustaining global dollar demand via trade deficits.
Some argue even full BTC ownership by the U.S. Treasury cannot cover its $37 trillion debt. Critics predict that ballooning liabilities may eventually cause the dollar’s collapse. Schiff also suggests that Trump’s Bitcoin stance is politically motivated to attract high-value crypto donors for electoral support.
In May, Trump hosted top TRUMP meme coin holders at a controversial White House dinner. Guests reportedly spent $150 million on the event, with allegations that Trump’s family made over $1 billion from crypto ventures.
Also Read: From $494 to $5,000? Bitcoin Cash (BCH) Sets Up for Explosive Move
