Reserve Dollar

Bitcoin ETF

Bitcoin

Gold

Reserve

<ul>
  
 <li>Peter Schiff warns that Senator Lummis' Bitcoin reserve aim could trigger inflation by increasing the Federal Reserve's money supply.</li>   
 <li>Schiff questions Bitcoin’s suitability as a reserve asset, focusing&nbsp; its volatility and instability compared to traditional reserves.</li>   
 <li>Economist Justin Wolfers criticizes Lummis', noting that the argument for the Bitcoin reserve lacks clarity and understanding.</li> 
</ul>   
<p>Peter Schiff has raised concerns over Senator Cynthia Lummis' need to establish a U.S. strategic Bitcoin reserve. The known economist argues that the plan, which involves acquiring 1 million Bitcoin over the next 20 years, would require the Federal Reserve to bring more money into circulation, leading to inflation.</p>   
<h2 class="wp-block-heading" id="h-schiff-questions-bitcoin-s-stability-as-a-reserve-asset">Schiff Questions Bitcoin’s Stability as a Reserve Asset</h2>   
<p>Schiff's criticism&nbsp; centres on the financial decision made by Lummis' proposal. He stated that the "Senator’s plan is to create inflation to buy Bitcoin," expressing concern that the approach could destabilize the economy.</p>   
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
   https://twitter.com/PeterSchiff/status/1820572844956463292 
 </div>
</figure>   
<p>The proposed legislation, titled "Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act," or the BITCOIN Act, aims to enhance the strength of the U.S. dollar while addressing national debt. The bill outlines that $6 billion would be allocated from net earnings remitted by the Federal Reserve to the Treasury between 2025 and 2029 to fund the <a href="https://cryptonewsland.com/bitcoins-bearish-outlook-market-cap-drops/" target="_blank" rel="noreferrer noopener">Bitcoin</a> purchases.</p>   
<p>Other than&nbsp; the inflation risk, Schiff expressed his doubts in&nbsp; Bitcoin's suitability as a reserve asset. He pointed out that a reserve asset should possess low volatility, efficiency, and stability that Bitcoin does not have. His comments follow a period of significant decline in Bitcoin's value, further fuelling doubts about its ability&nbsp; as a reserve asset.</p>   
<h2 class="wp-block-heading" id="h-economist-wolfers-joins-schiff-in-criticism">Economist Wolfers Joins Schiff in Criticism</h2>   
<p>Moreover, Schiff is not alone in his criticism. Justin Wolfers, an economist at the University of Michigan, also expressed himself about Lummis’ plan. He described the Senator's reasoning behind the bill as a perplexing argument, noting that it does not have clarity and understanding</p>   
<p>Schiff’s remarks, together with similar concerns from other economists, suggests that Lummis’ proposal may face rejection as it moves forward. The debate&nbsp; emphasizes the broader controversy surrounding Bitcoin's role in the U.S. financial system and its potential risks.</p>   
<h4 class="wp-block-heading" id="h-read-also"><strong>Read also:</strong></h4>   
<ul class="wp-block-yoast-seo-related-links yoast-seo-related-links">
  
 <li><a href="https://cryptonewsland.com/peter-schiff-criticizes-bitcoin-institutional-demand-amid-market-downturn/">Peter Schiff Criticizes Bitcoin Institutional Demand Amid Market Downturn</a></li>   
 <li><a href="https://cryptonewsland.com/peter-schiff-labels-bitcoin-etf-investors-as-dumb-money/">Peter Schiff Labels Bitcoin ETF Investors as “Dumb Money”</a></li>   
 <li><a href="https://cryptonewsland.com/bitcoin-faces-extended-bear-market-amid-gold-comparison-schiff-raises-concerns/">Bitcoin Faces Extended Bear Market Amid Gold Comparison, Schiff Raises Concerns</a></li>   
 <li><a href="https://cryptonewsland.com/bitcoin-hater-peter-schiff-co-launches-bitcoin-nft-art/">Bitcoin Hater Peter Schiff Co-Launches Bitcoin NFT Art</a></li>   
 <li><a href="https://cryptonewsland.com/peter-schiff-challenges-trumps-bitcoin-endorsement-as-vote-seeking-move/">Peter Schiff Challenges Trump's Bitcoin Endorsement as Vote-Seeking Move</a></li> 
</ul> 
<p>The post <a href="https://cryptonewsland.com/schiff-criticizes-lummis-bitcoin-reserve-plan-predicts-inflation/">Schiff Criticizes Lummis’ Bitcoin Reserve Plan, Predicts Inflation</a> appeared first on <a href="https://cryptonewsland.com">Crypto News Land</a>.</p>

Schiff Criticizes Lummis’ Bitcoin Reserve Plan, Predicts Inflation

Table of Contents

Crypto News Land

Other articles published on Aug 6, 2024

“Black Swan” Author Explains Japanese Market Collapse That Caused Crypto Market Crash

Spend2Burn with $ZIG Card Powered by MasterCard — Seamless crypto payments at +38M merchants worl...

Arbitrum, Optimism Lead Ethereum Rollups; ZK-EVM Rollups Next

Ronin Bridge Hacked Again, Resulting in $9.33 Million Wipeout

DeFi Liquidations Hit Record High Amid Crypto Market Sell-Off

‘The Black Swan’ author says Bitcoin a poor hedge against market meltdown

Join our free newsletter for daily crypto updates!