Peter Schiff Renews His Skepticism Toward Bitcoin's Utility as a Hedge Against Inflation

According to Schiff, recent price action shows that Bitcoin still mirrors the behavior of tech stocks rather than that of gold.

Peter Schiff, a renowned economist and staunch critic of Bitcoin, has again voiced his skepticism towards the flagship cryptocurrency. Despite claims of Bitcoin being a hedge against inflation and a safe-haven asset, Schiff remains unconvinced.

In a recent post, he argued that recent price action shows Bitcoin still mirrors the behavior of tech stocks more closely than that of gold, rendering it unsuitable as a hedge against inflation, especially with consumer prices remaining sticky.

“If you’re worried about inflation, don’t buy Bitcoin. Buy gold. Bitcoin is still acting more like a tech stock and hasn't decoupled from the NASDAQ. It doesn't have the stability to be a store of value. It's going up and down with the markets.”

Bitcoin price has risen amid optimism over interest rates and easing inflation. The PCE inflation rate came in at 2.3% year over year, cementing the view that the Federal Reserve may consider cutting interest rates at upcoming meetings.

Furthermore, US President Donald Trump recently urged Federal Reserve Chair Jerome Powell to cut interest rates ahead of the next Federal Open Market Committee (FOMC) meeting. Trump claimed that there is “no inflation” and that current economic conditions warrant a looser monetary stance.

However, Schiff argued that the rise in Bitcoin's price appears more linked to investor speculation and macroeconomic developments than to intrinsic monetary properties. He continued to warn that Bitcoin may not offer the same long-term protection for wealth as traditional safe-haven assets.

Senator Lummis Links Bitcoin Adoption to National Debt Relief

Meanwhile, Senator Cynthia Lummis has linked the adoption of Bitcoin to the broader economic policy of reducing the US national debt.

Speaking at an event discussing the pressing issue of the United States’ $36 trillion national debt, Lummis expressed her support for the BITCOIN Act as a possible solution.

She stated that the current administration, which includes officials like Treasury Secretary Janet Yellen, shows a surprising openness to considering digital assets. Therefore, passing the BITCOIN Act is “the only solution to our nation’s $36T debt.”

Even with limited details available, the proposal is drawing attention as policymakers seek to explore alternative financial systems.

Lummis, known for her pro-Bitcoin stance, has consistently supported legislative efforts that encourage adoption and provide regulatory clarity for cryptocurrencies.

However, despite her optimism, the prospects of the BITCOIN Act advancing smoothly through Congress remain uncertain, especially considering the upcoming presidential election and the potential for shifting political priorities.

While the legal and political hurdles to passing the BITCOIN Act and its broader implications for the US financial landscape remain significant, her statement highlights the growing interest among policymakers in exploring new avenues for addressing pressing economic challenges.