The crypto industry is eagerly waiting President Trump’s reforms to roll out, especially the establishment of a U.S. Bitcoin Reserve. According to Kalshi’s regulated prediction market, there’s a 63% chance of Trump setting up the reserve by January 2026.
To these numbers, Anthony Pompliano, a cryptocurrency investor and CEO of Professional Capital Management, expressed optimism over the idea and suggested that the market has not fully priced in its potential on his tweet. To this, Peter Schiff, CEO of Euro Pacific Capital and a Bitcoin (BTC) skeptic, shared his criticism.
Peter Schiff Chimes In
Peter Schiff is a strong supporter of investing in gold as he thinks these investments are safe and more safe and reliable than BTC. He responded to Pompliano’s tweet, stating that the formation BTC Reserve under Trump administration is not going to happen. “Trump will not create a Bitcoin reserve. He will defer to Congress” Schiff stated. “He knows Congress won’t pass it, but the prospect that it may support the price until people realize it’s never going to pass. There’s no real support for it.”
Schiff Thinks Trump Will Defer Responsibility to Congress
Here with the tweet, the gold support is trying to say that Trump may not take this action on his own but would pass on the responsibility to Congress to decide. This will lead to debates, votes and then the party would reach to a conclusion, which according to Schiff will not be in favor of creating a Bitcoin Reserve.
Price of the Bitcoin Token Will Surge for a Short While
Schiff also thinks that this situation and proposal will cause an uptick in the price of the BTC token but as soon as the final verdict is out, if there is no BTC reserve, the price of the token would drop drastically. Schiff also thinks that there is no genuine support for the reserve, and views it more like a political gesture rather than a serious economic plan.
Growing Influence of Cryptocurrency
This debate indicates that the community is divided into two parts, first, the crypto community which supports Bitcoin and thinks that it can act as a hedge against inflation like Pompliano and the second, the traditional financial advocates, like Schiff, who warn of the risk associated with these assets.
As the debate continues, Bitcoin’s role in national reserves remains speculative. With such discussion, one thing is clear that this proposal highlights the growing influence of Bitcoin and cryptocurrency in financial sector.
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