Peter Schiff Says Bitcoin Can Fix Social Security, Here’s How

Peter Schiff, a long-time Bitcoin critic, has recently presented an unconventional plan suggesting that BTC could be the key to addressing the Social Security funding issue in the United States. Schiff, known for his skeptical views on crypto, has proposed that the Social Security Trust Fund should sell off its $2.7 trillion in U.S. Treasury holdings and use the proceeds to purchase Bitcoin. This move, he argues, could resolve Social Security’s projected funding shortfalls and secure its future.

Bitcoin to the Rescue? Peter Schiff’s Bold Plan for Social Security’s Financial Stability

In a lengthy sarcastic post on X, Peter Schiff shared his new perspective on how Social Security’s financial issues could be addressed through Bitcoin. Peter Schiff proposed that the Social Security Trust Fund divest its $2.7 trillion in U.S. Treasuries and reinvest the amount into the cryptocurrency.

He projected that such a move could raise the Trust Fund’s assets to over $100 trillion if BTC price reached $20 million per coin. This would create a surplus large enough to cover the program’s anticipated $23 trillion funding gap over the next 75 years.

Under Schiff’s plan, as the Social Security Trust Fund acquires Bitcoin, this buying pressure could drive BTC price up sharply. He suggested that with a 25% stake in the crypto’s total supply, the Trust Fund could establish a sustainable asset base.

The financial analyst added, 

“The Trust Fund could then use all the Social Security payroll taxes it collects to buy more Bitcoin, supporting the price of Bitcoin and maintaining the value of its only asset.”

Collateral for Social Security Payments

To address liquidity concerns, Peter Schiff acknowledged the challenges of selling Bitcoin holdings without impacting the market. Therefore, he recommended that the government classify the digital currency as a reserve asset. 

In this scenario, the Trust Fund’s BTC holdings could serve as collateral at the Federal Reserve, allowing it to secure cash needed to fulfill Social Security obligations without selling off the cryptocurrency itself. This approach will provide cash flow for benefits while preserving the crypto on the Fed’s balance sheet.

According to the analyst, this would be advantageous for the government. He explained,

“This arrangement is better for the government than the Fed holding Treasuries, as it doesn’t have to pay interest on Bitcoin, nor is there principal to repay. The Fed can simply HODL Bitcoin on its balance sheet indefinitely—the ultimate diamond hands. After Bitcoin fixes Social Security, the government can move on to fixing everything else with Bitcoin.”

In contrast, the financial analyst had earlier expressed strong opposition to President-elect Donald Trump’s proposal to establish a U.S. Bitcoin reserve. Peter Schiff argued that the plan could devalue the U.S. dollar in the long term and potentially destabilize the economy.

Moreover, the BTC critic, known for his support of gold, previously labeled Bitcoin as “anti-gold,” emphasizing that, unlike gold, it lacks value and stability. However, Peter Schiff’s latest proposal was rather sarcastic other than a change of heart on the crypto. 

✓ Share:

Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.