Schiff says Trump’s support for Bitcoin hurts the US dollar

Peter Schiff, the well-known economist and Bitcoin critic, has launched a scathing critique of President Donald Trump’s pro-Bitcoin stance, warning that the shift toward the digital asset could inflict lasting damage on the US dollar and the broader economy.

Just a day after Trump publicly praised Bitcoin for boosting the US economy, Schiff took to X and warned that increased Bitcoin adoption is placing the dollar under immense strain. “Selling dollars to buy Bitcoin puts added pressure on the dollar,” he posted. “Also, wasting resources on Bitcoin is harmful to our country.”

Trump hails crypto’s economic power

During a White House press conference on Friday, Trump praised the crypto industry as a formidable economic machine that the nation cannot sit and watch pass it by.

Trump said that crypto has become incredible. He noted that it is producing many jobs, and he sees more and more people using Bitcoin for transactions. Trump noted that people are saying it will also take off a lot of pressure on the dollar, which would be a very good thing for their country.

Trump’s change of tune could be a significant milestone in transitioning toward mainstream adoption of digital currencies in the American economy.

Anders X, a digital asset researcher, said Trump’s comments could reference the Triffin Dilemma. This perennial economic paradox emphasizes the tension between a nation’s domestic monetary policy and its role as a global reserve currency. This theory holds that because the global trade system is anchored on the US dollar, it creates a structural imbalance that can weaken the currency over time.

Schiff warns of dollar collapse as Trump doubles down on Bitcoin strategy

Schiff argues that the mass conversion of US dollars into Bitcoin weakens demand for the greenback, and by doing so, it loses its monopoly as the world’s reserve currency. His remarks starkly contrast with those made by Trump, who described Bitcoin as “amazing” and alleviated pressure on the dollar by creating jobs and outperforming the stock market.

The Trump administration has allegedly considered taking a Bitcoin-focused investment to fund a Strategic Bitcoin Reserve using assets seized in connection with criminal and civil forfeiture. Several US states are now following suit, allocating capital to build their own Bitcoin reserves.

Trump’s personal ties to the crypto industry have grown stronger. Trump Media recently secured $2.3 billion through private placement to fund its Bitcoin treasury operations. According to Schiff, transforming US dollars from stock and note sales to Bitcoin carries a lot of financial risk.

Schiff did not limit his misgivings to macroeconomic risks — he also attacked Trump for raising Bitcoin for campaign contributions. The economist says Trump’s enthusiasm for digital assets is a play for wealthy crypto donors as the next election season nears.

The backlash comes after Trump’s controversial May dinner with some of the top holders of the TRUMP meme coin. According to reports, roughly $150 million was spent for a seat at the table, though critics say the Trump family has made over $1 billion from its crypto business.

Further adding to the crypto frenzy, the World Liberty Financial (WLFI) company associated with Trump recently received a $100 million backing from Aqua 1 to promote its decentralized finance (DeFi) efforts. The Trump family adopted Bitcoin because it was debanked from traditional financial institutions.

As Trump continues to embrace crypto both politically and personally, Schiff’s warnings highlight the growing divide between Bitcoin advocates and traditional economists. 

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