Gold Guru Peter Schiff Slams Bitcoin, Blames Trump for Wrapping 'Decentralized Ponzi Scheme' in Stars and Stripes

Schiff Says Trump's Crypto Love is Speeding Up the Dollar's Demise

Gold advocate Peter Schiff is fuming over Bitcoin, and he's pointing the finger at President Donald Trump for wrapping a "decentralized Ponzi scheme" in the American flag. Schiff is not holding back, claiming that Trump's crypto cheerleading is not just speeding up the dollar's downfall but also giving digital assets a false sense of legitimacy.

Schiff didn't mince words, posting on X that "By promoting domestic investment in Bitcoin and crypto, Trump is helping undermine the U.S. economy and speed up the dollar's collapse." He's sounding the alarm, warning that while Bitcoin enthusiasts might be popping champagne over a weakening dollar, they're in for a rude awakening.

"Bitcoiners may cheer, as most bought Bitcoin to profit from a dollar crash. But ironically, gold will be the winner as Bitcoin will crash too," Schiff declared. He's calling it like he sees it, predicting that Bitcoin (BTC) fans may initially celebrate a weaker dollar, but in the end, gold will come out on top as Bitcoin comes crashing down.

Schiff isn't just targeting Trump; he's taking aim at recent cryptocurrency bills, dismissing them as nothing more than attempts to "cloak Bitcoin—nothing more than a decentralized Ponzi scheme—in the trappings of legitimacy." He's accusing industry insiders of using these bills to pump up digital assets while planning their own exits at higher prices.

"The industry is using them to hype Bitcoin and other cryptos so insiders can cash out at higher prices. It's a legislative low point," Schiff wrote, pulling no punches.

And he's not done yet. Schiff is also taking a swipe at stablecoin initiatives, calling them ineffective at maintaining dollar dominance. He's arguing that stablecoins can be backed by any fiat currency and don't provide any real stability advantage.

"The hype that stablecoins will help secure the U.S. dollar's dominance in global trade is nonsense," Schiff stated bluntly. He's warning that dollar-backed stablecoins are only as stable as the underlying currency and that "that 'stability' will soon give way."

Schiff is pulling out the big guns, invoking Charles Mackay's "Extraordinary Popular Delusions and the Madness of Crowds" to draw a parallel between Bitcoin and digital assets and the infamous Dutch tulip bubble.

He's quoting Mackay's observation that "every age has its peculiar folly" and identifying digital tokens as our era's delusion. Schiff is dropping truth bombs, quoting, "They go mad in herds, and only recover their senses slowly, and one by one."

Americans, according to Schiff, haven't learned from history—they're just repeating the same mistakes. He's hammering home the point that "Every age has its peculiar folly," and in our time, it's digital tokens backed by nothing but collective delusion.

The Dutch tulip bubble of the 1630s was a wild speculative frenzy where tulip bulb prices skyrocketed to insane heights before crashing overnight, leaving investors holding worthless contracts. Often cited as the first recorded financial bubble, it's become a symbol of irrational market mania.

Schiff is drawing a straight line from the tulip madness to Bitcoin adoption, noting that Dutch society once neglected regular business for tulip trading. He's wrapping it up with a mic drop, saying, "Just replace tulip with Bitcoin, and that sums it up perfectly."

Schiff's warnings are a reflection of his deep skepticism about monetary systems not backed by gold and his belief that cryptocurrency is a dangerous speculative distraction from sound economic policy.