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Fix Economy; US Government Bets on Bitcoin Instead

Fix Economy; US Government Bets on Bitcoin Instead WikiBit 2025-06-07 05:26

Peter Schiff criticized the May jobs report, warning about poor quality job growth. He advocates for rate hikes and spending cuts to boost the

Schiff argues this dynamic, where service-sector workers spend their wages on goods the nation no longer produces, fuels inflation, worsens trade deficits, and weakens the economy.

Schiffs Prescription vs. a New Digital Strategy

Replying to Coin Edition, Schiff prescribed a course of higher interest rates, deregulation, and cuts in government spending. He contends these measures are necessary to curb consumption, incentivize savings, and drive capital investment back into Americas goods-producing industries.

Are you suggesting this trend will fuel more inflation? And in your view, what corrective steps should be taken to address the imbalance between productive and non-productive job growth?

To Coin Edition‘s query on the role of Bitcoin in U.S. financial policy, Schiff pointed out that the timing aligns with wider discussions on the use of digital assets in national reserves. The debate over Bitcoin’s function as a hedge against inflation and its comparison to gold continues to draw attention within financial and political spheres.

Appreciate the deeper analysis, Peter Schiff.

Whats your view on the idea of the U.S. holding Bitcoin in reserves? Could it play any role in addressing inflation long-term?

What You Need to Know About Americas Bitcoin Reserve Plan

On March 6, 2025, President Donald Trump signed an executive order establishing a U.S. Strategic Bitcoin Reserve under the newly enacted Bitcoin Act of 2025. Over a period of five years, the reserve aims to acquire up to 1 million Bitcoin and will hold them for at least the next two decades. The initiative wants to establish Bitcoin as a strategic financial hedge and long-term store of value.

Related: Bitcoin Rally Faces Headwinds as Matrixport Report Points to Weakening U.S. Economy

The reserves funding will come from a combination of forfeited digital assets, surpluses from the Federal Reserve, and revised gold certificates. The Department of the Treasury will manage this effort, which will use blockchain verification along with offline security measures. Some states, including New Hampshire, Arizona, and Texas, have enacted laws to create their own strategic Bitcoin reserves. In contrast, eight other states, such as Florida and Wyoming, have dismissed similar proposals due to worries about volatility.

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The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.

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