Veteran economist Peter Schiff has issued a stark warning about the future of Bitcoin. Posting on X (formerly Twitter), Schiff said, "Bitcoin was born out of the financial crisis of 2008. Ironically, the financial crisis of 2025 will kill it." His statement comes as financial markets around the world experience high levels of volatility.
The situation intensified after the dramatic April 7 equity market crash, now referred to as "Black Monday," and the unexpected 90-day pause on tariffs announced by the U.S. President. These developments have shaken investor confidence and caused widespread concern about the global economy.
Schiff criticized the steep decline in Bitcoin's value, noting that the digital asset has dropped more than 27 percent since January. He also took aim at the U.S. government's decision to launch a Strategic Bitcoin Reserve, which began operations on March 6.
Since then, the reserve has already seen a loss of over 12 percent. Schiff argued that had the government invested in gold instead of Bitcoin, it would have realized a 2 percent gain. He emphasized this by pointing to gold's performance, which climbed sharply to more than $3,175 on April 9, gaining $90 in a single day.
The economist's criticism wasn't limited to Bitcoin. He also took shots at major cryptocurrency supporters, including Michael Saylor, the chairman of MicroStrategy, who is well known for backing Bitcoin.
Schiff predicted that Ethereum, another leading cryptocurrency, is on track to drop below $1,000, especially after it plunged nearly 20 percent overnight, falling under the $1,500 mark. His comments come as investors grow increasingly skeptical of the crypto market's ability to deliver during economic instability.
Schiff also highlighted the recent weakness of the U.S. dollar, which has lost 2.3 percent of its value against the euro and yen, and 3.9 percent against the Swiss franc. In contrast, gold-related stocks have seen a strong increase, rising by 5 percent.
Treasury yields have also spiked, signaling investor anxiety and increasing fears of stagflation—a mix of economic stagnation and rising inflation. These developments have further bolstered Schiff's argument that gold is a more reliable hedge than digital currencies.
As economic uncertainty deepens, Schiff's strong preference for gold over cryptocurrency is gaining renewed attention.
Many investors are now reconsidering their portfolios, weighing the security of traditional assets against the risk and volatility of decentralized finance. His statements add fuel to the ongoing debate about the role Bitcoin should play in a fragile global economy.
The divide between digital assets and traditional safe havens is becoming more pronounced. While Bitcoin once promised to be a safeguard during times of crisis, recent market performance has cast doubt on that role. Schiff argues that gold's stability and historical track record make it a far better choice in today's economic climate.
