US President Donald Trump’s growing support for Bitcoin has drawn sharp criticism from economist Peter Schiff, who warns that the move could weaken the dollar.
According to reports, Trump believes Bitcoin lifts jobs and eases strain on the dollar, but Schiff says the opposite may be true.
Bitcoin’s price has jumped more than 30% this year, and some see it as a shield against inflation. Schiff argues that those dollar sales chip away at the greenback’s standing.
He warned that the broader economy could feel the effects if the trend grows.
Pandering to his donors and to promote his family business, Trump claimed that Bitcoin “takes pressure off the dollar and is good for the country.” But selling dollars to buy Bitcoin puts added pressure on the dollar. Also, wasting resources on Bitcoin is harmful to our country.
Based on reports, the federal government plans no direct sales of dollars. Instead, it will use funds from criminal and civil forfeiture to build a Strategic Bitcoin Reserve.
At least 10 states, including Texas and Florida, are following suit. They’re setting aside capital to buy and hold crypto on their balance sheets. That shift means government units could end up tied to a volatile asset.
In May, a White House event hosted top holders of the “TRUMP” meme coin. Attendees spent nearly $150 million for seats at a dinner.
Critics say the family has already netted over $1 billion from its crypto ventures. Those figures show how deeply the campaign is courting the crypto community.
He described the fundraising events as “a ploy to attract crypto-based support.” At the same time, volatility in Bitcoin markets poses real financial risk. A sudden price drop could leave any reserve tied up in losses rather than gains.
Trump Jr. has said that banking cut‑offs forced the family toward cryptocurrencies, but many see the move as a bid for fresh funds. That deal highlights how the family is betting big on emerging crypto sectors.
Featured image from MediaNama, chart from TradingView
