TLDR
- Peter Schiff said Bitcoin has no real use and exists only for speculation.
- He argued that the only reason people buy Bitcoin is the hope that its price will rise.
- Schiff claimed Bitcoin cannot generate income or be used for anything outside of trading.
- He told Tucker Carlson that Bitcoin will never become a global reserve asset.
- Schiff criticized the idea of a US strategic Bitcoin reserve as a bailout for early adopters.
- He accused some crypto backers of influencing politicians to gain support for Bitcoin.
Peter Schiff, economist and gold advocate, challenged Bitcoin‘s legitimacy in a new interview with US commentator Tucker Carlson, saying its use is purely speculative. He also criticizes US fiscal policy, inflation reporting, and crypto promotion by the government all in a wide-ranging conversation centered on economic trust and asset value.
Schiff Calls Bitcoin a Speculative Asset With No Real Use
Peter Schiff rejected the idea that Bitcoin has any practical utility, labeling it a purely speculative asset.
He told Tucker Carlson, “The only reason anybody wants to buy it is that they think the price is going to go up.”
Schiff emphasized that Bitcoin has no income-generating ability, no physical form, and no use outside of price speculation.
Carlson questioned Schiff about the comparison between Bitcoin and gold, asking, “How’s that different from buying gold?” Schiff replied, “There’s a big difference… [Bitcoin] is never going to earn money in the future.”
He insisted that gold is a valuable commodity with demand in industries like electronics, jewelry, and medicine.
Schiff continued to argue that Bitcoin is not “real money” and lacks the intrinsic value gold provides through its non-monetary applications. He warned that any push to include Bitcoin in a strategic reserve fund is merely a bailout for early adopters. Schiff said some supporters “paid off a bunch of politicians” to gain backing for Bitcoin.
Inflation Accusations and Attacks on Fiscal Policy
Schiff also directed criticism at the US government’s handling of inflation, claiming Americans are “being lied to” through altered metrics. He said changes to the Consumer Price Index allow officials to deflect blame onto private companies. According to him, businesses are simply adjusting prices in response to actual inflation, not causing it.
He criticized both Republican and Democratic administrations, calling President Trump’s spending bill “the worst thing that we’ve done under Trump.” Schiff said it “made it worse” by cutting taxes while increasing spending, which he claims contributed to inflation. He added that the policies have weakened the dollar’s purchasing power over time.
Carlson pressed Schiff on why the US couldn’t use Bitcoin as a hedge against inflation or as a global reserve asset. Schiff argued that Bitcoin’s lack of industrial use disqualifies it from such a role. He said the currency would collapse if central banks attempted to liquidate it on a large scale.
Gold Rally Contrasts With Bitcoin Price Dip
While discussing the contrast in asset performance, Schiff pointed to gold’s surge past $5,000 per ounce in January. The metal jumped 17% in the month during rising global tensions. Meanwhile, Bitcoin dropped below $86,000 during the same period.
Schiff used this price movement to argue that gold is the more stable and trustworthy store of value. He claimed that fully backed tokenized gold on blockchains can support payments without relying on speculative growth. This system, he said, avoids the inflationary risks linked to fiat and crypto tokens.
In his closing remarks, Schiff maintained that gold will remain a core monetary asset due to its tangible demand. He rejected any suggestion that Bitcoin could replace the dollar in global trade. He said, “It’s a complete waste of capital and a false hope sold to the public.”
