Bitcoin (BTC) Heir Apparent to Global Finance? Peter Schiff Poses Interesting Question

Economist and well-known Bitcoin critic Peter Schiff raised an interesting question on social media this week. He asked a simple, yet loaded question

Economist and well-known Bitcoin critic Peter Schiff posed an interesting question on social media this week. As foreign central banks are actively stocking up on gold in preparation for a world where the U.S. dollar may no longer be the main global currency, why aren't they buying Bitcoin instead?

"If gold is the past and Bitcoin is the future, why are foreign central banks that are preparing for a future where the U.S. dollar is no longer the reserve currency, replacing their dollar reserves with gold and not Bitcoin?" asked Schiff.

When a user claimed that banks are buying Bitcoin, Peter replied and said, "No they are not. Some of their customers are. They are just making money off them."

Schiff Challenges Bitcoin Narrative as Central Banks Stockpile Gold

The reporter highlighted that the U.S. dollar index fell by around 2% this week, closing just above 99. Also, yields on U.S. government bonds went up, with 10-year bonds now yielding over 4.5% and 30-year bonds yielding more than 5%.

According to Schiff, this increase in yields might lead to a further decrease in bond prices next week.

Moreover, the S&P 500 index went down around 2.5%, continuing a trend from last week where the dollar, stocks, and bonds were decreasing in value while gold and silver prices increased.

According to Schiff, two main events contributed to this state of affairs in the U.S. financial markets. The first event was the passage of a large spending bill by the U.S. House of Representatives, which Schiff sarcastically called the "big beautiful bill."

This bill will increase government debt despite earlier promises of budget cuts. The second event was a downgrade of U.S. government debt by one notch from a credit rating agency, Moody’s. This follows similar downgrades by Standard & Poor’s and Fitch in the past.

According to Schiff, the problems with the U.S. government’s finances have been evident for some time, and this downgrade is something that should have happened a long time ago.

On a positive note, Schiff said that precious metals like gold, silver, and platinum could perform well next week.