Donald Trump’s growing involvement in Bitcoin is drawing sharp criticism from economist Peter Schiff, who warns that the embrace of digital assets could erode the strength of the U.S. dollar.
As Trump paints Bitcoin as an economic booster, Schiff sees it as a destabilizing force.
The tension flared after Trump praised Bitcoin’s performance and its potential to reduce pressure on the dollar. But Schiff argues that converting U.S. currency into BTC weakens demand for the greenback, undermining its role in global markets. He also warned that such a shift diverts resources into what he believes is an unproductive asset.
While the federal government isn’t openly buying Bitcoin with dollars, it is accumulating the asset through seizures and forfeitures. Several U.S. states are following that lead, setting up their own BTC reserves funded through capital reallocation — a trend Schiff finds troubling.
Meanwhile, Trump’s media company has reportedly raised over $2 billion to support its own Bitcoin treasury. Critics suggest this move isn’t purely economic but part of a calculated effort to court wealthy crypto donors. Schiff has accused Trump of using the digital asset space to build political alliances, pointing to high-priced private dinners with meme coin holders and allegations of major crypto-linked fundraising.
Trump’s camp, however, claims the family’s deeper move into crypto was triggered by being cut off from traditional financial institutions, not by opportunism. Yet for Schiff, this shift looks more like a gamble — one that could have serious consequences for the dollar’s future.
