Peter Schiff Calls Bitcoin a Speculative Asset Despite Recent Gains, Here’s Why

Key Insights:

• Peter Schiff calls Bitcoin a highly speculative digital token lacking real stored value
• Economist dismisses Bitcoin’s “digital gold” narrative as a decentralized Ponzi scheme operation
• Schiff predicts the 2025 financial crisis will end Bitcoin despite recent price gains

Peter Schiff reveals why Bitcoin remains a speculative asset despite recent price gains.

The economist argues that a huge difference exists between gold and digital tokens. Schiff dismisses Bitcoin as having no real value to store effectively.

He maintains a skeptical stance even as Bitcoin reaches new all-time highs consistently.

Schiff Distinguishes Between Gold and Bitcoin as Store of Value

Peter Schiff argues that a huge difference exists between a store of value like gold and Bitcoin.

The economist describes Bitcoin as a highly speculative digital token lacking real value. He maintains that prior speculative gains don’t qualify Bitcoin as store value.

When challenged about proof of Bitcoin’s speculative nature, Schiff responded confidently.

He stated that everything about Bitcoin is speculative with proof in digital pudding. The economist consistently maintains this position despite Bitcoin’s price appreciation over time.

Peter Schiff acknowledges owning Bitcoin in his Strategic Bitcoin Reserve, but with conditions. He promised donors never to sell, making it like he doesn’t own.

The economist claims more money in gold and silver mining stocks than whales. Bitcoin gained 27% in 2025, while the GDX mining index rose 61% comparatively. He uses this performance to challenge Bitcoin investor returns directly.

Regarding Ethereum, Schiff suggests selling near the trading range’s upper end currently.

Peter Schiff recommends switching from Ethereum to Bitcoin as a better trade option. However, this tactical advice doesn’t change his fundamental crypto skepticism.

The economist rejects Bitcoin’s digital gold narrative completely, calling it a decentralized Ponzi scheme. He argues Bitcoin functions as a meme coin for the masses, driven by hype.

Economist Questions Bitcoin Scarcity Arguments and Supply

Peter Schiff challenges Bitcoin’s perceived scarcity despite the 21 million supply cap limitation.

He argues the supply limit is arbitrary and that divisibility into satoshis matters more. The economist compares this to slicing a pizza into more pieces without changing the total.

Schiff contends that actual supply becomes less important than the market perception of availability.

Bitcoin’s divisibility creates an illusion of abundance through smaller unit accessibility. Schiff uses this argument to counter scarcity-based value propositions consistently.

Despite Bitcoin reaching over $120,000 in July 2025, Schiff dismisses pricing as speculation.

Schiff maintains that previous gains don’t establish store of value credentials for buyers. The economist views all-time highs as confirmation of speculative bubble behavior.

Peter Schiff predicts the 2025 financial crisis will end Bitcoin, contrary to supporter expectations. He notes the irony that Bitcoin emerged from the 2008 crisis but won’t survive the next.

The economist expects global economic turbulence and political events to expose weaknesses.

Rising financial instability and new US tariffs create crisis conditions, according to analysis. Schiff believes these factors will reveal Bitcoin’s fundamental lack of value. He maintains gold will benefit if the dollar collapses while crypto fails.

The economist criticizes crypto-friendly legislation as cloaking Bitcoin in false legitimacy. He argues such policies undermine the US dollar and economic stability.

Peter Schiff Maintains Tactical Flexibility While Criticizing Crypto Policies

Schiff sometimes credits Bitcoin’s volatile price spikes even as underlying skepticism continues unabated.

The economist clarified that it might be more beneficial to trade Bitcoin instead of Ethereum. This was achieved by looking at charts and not by personal opinion of the assets.

Schiff continues to recommend that investors transition from crypto to gold. He believes gold is a good option and safer than cryptocurrencies.

The economist predicts that gold will prosper once the dollar collapses. Schiff believes that crypto is nothing but short-term speculation without any economic basis.

Regarding recent cryptocurrency legislation, Schiff expresses strong criticism of US policy. He argues that crypto-friendly laws encourage Bitcoin adoption, undermining dollar stability.

The economist argues that these bills hurt more extensive US economic interests.

Schiff portrays crypto law as surrounding Bitcoin with spurious legitimacy trappings. Schiff is of the opinion that such legislation provides a dangerous precedent for the monetary system.

With or without parliamentary support, Peter Schiff foresees Bitcoin falling apart in times of crisis. Crisis will reveal inherent weaknesses that policy cannot repair, he argues.