Economist Peter Schiff Warns of 80% Losses in TRUMP Coin, 55% Drop in Strategy Stock

In early March, former U.S. President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve. This move was met with enthusiasm by crypto supporters but drew criticism from traditional economists. One of the most vocal critics is Peter Schiff, a well-known economist and long-time skeptic of cryptocurrencies.Schiff has expressed his concerns about the potential risks associated with the Strategic Bitcoin Reserve. He believes that the policy aims to mislead investors into pouring capital into the crypto industry, which he views as highly speculative and risky. Schiff has consistently preferred gold as a store of value over cryptocurrencies, including Bitcoin. He warns that the current crypto frenzy could lead to significant losses for many American investors, surpassing any previous speculative mania in history.Schiff's criticism extends to the TRUMP meme coin, which he cites as an example of the dangers of crypto investments. The TRUMP coin, which was initially valued at over $70 per coin, has since lost 80% of its value. Schiff argues that the coin's popularity was largely due to its association with Donald Trump, and that many investors were drawn in by the hype rather than a genuine understanding of the risks involved. He warns that similar scenarios could occur with other celebrity-endorsed crypto products, leaving investors with substantial losses.Schiff also expressed his doubts about the investment strategies of firms like Strategy, formerly known as microstrategy. He criticized the firm's risky growth plan, increasing debt, and reliance on Bitcoin price volatility. With Strategy's stock prices having plummeted by 55% from November of the previous year, Schiff believes that the firm is not in a healthy financial position. Schiff's stance on cryptocurrencies is well-documented, and he has consistently opposed governmental adoption of crypto initiatives, labeling them as wasteful spending. He has also denied that Bitcoin presents any long-term value, describing it as a non-real asset. Despite the praise for the Strategic Bitcoin Reserve from participants at the Blockworks Digital Assets Summit, Schiff remains steadfast in his criticism.The establishment of a Strategic Bitcoin Reserve has sparked significant debate, with both officials and civilians expressing opposition. While the Trump administration and some House representatives continue to push for crypto-friendly legislation, many economists, including Schiff, warn about the potential dangers of this initiative. If the Strategic Bitcoin Reserve fails to deliver the promised prosperity and profits, it could lead to a financial crisis, as Schiff predicts.