Peter Schiff Says Biden Selling All US Bitcoin Would Be “Good,” Here’s Why

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As a seasoned financial analyst with over three decades of experience in the industry, I find Peter Schiff’s statements about Biden selling all US Bitcoin holdings to be intriguing but not entirely convincing. While reducing budget deficits is a laudable goal, the political implications and potential market reactions make such a move questionable.

As an analyst, I recently observed a notable comment from esteemed economist Peter Schiff. In contrast to popular sentiment, Schiff advocated that the U.S. government selling its entire Bitcoin holdings could potentially yield benefits for our nation. He elaborated on his reasoning behind this unconventional stance.

Peter Schiff Says Biden Selling All US Bitcoin Will Be “Good”

In a recent post on platform X, economist Peter Schiff suggested a potential beneficial action for President Biden prior to his term ending: selling off any Bitcoins held by the U.S. government. He reasoned that the revenue generated from these sales could contribute significantly in mitigating the projected budget deficit for the year 2024.

The economist commented further, stating that this proposal would put an end to the misunderstandings surrounding the establishment of a Bitcoin reserve with potential harmful effects. This remark pertains to the U.S. President-elect Donald Trump’s idea of setting up a Bitcoin reserve utilizing the existing government bitcoin holdings.

Although purchasing Bitcoin might pose a challenge for Donald Trump’s initiative to establish a Strategic Bitcoin Reserve due to potential increased costs, it’s possible that the new administration could still invest in Bitcoin, albeit at a higher price point. Peter Schiff, however, is skeptical that the Trump administration will choose to make such an investment.

Trump never explicitly pledged to acquire any Bitcoin; instead, he declared he’d never dispose of assets the government currently holds. In essence, Trump hinted that Biden might help him maintain his campaign promise by selling off these digital coins before taking office, thus avoiding the need for him to own them. This is how Peter Schiff put it.

Schiff’s latest remarks come just days after he said that Bitcoin could destroy the US Dollar. He explained that the government could print more money to buy BTC after adopting the flagship crypto, which could lead to a larger bubble squandering the nation’s wealth.

Strategic Bitcoin Reserve Could Still Come To Life

Despite Peter Schiff’s skepticism, I firmly believe that the Strategic Bitcoin Reserve could become a reality, regardless of whether the Biden administration decides to sell its bitcoin holdings. This is all thanks to Senator Cynthia Lummis’ proposed ‘Bitcoin Act of 2024,’ which, if passed, would pave the way for increased government acceptance and investment in Bitcoin.

As a researcher, I’m exploring a potential legislative proposal that suggests establishing a Strategic Bitcoin Reserve for the U.S. government, funded by regular remittances from the Federal Reserve. This plan also includes the possibility of the U.S. purchasing up to one million Bitcoins over the next four years. In other words, should this bill be passed, the United States would continue to acquire more Bitcoin, regardless of whether the current administration decides to sell off its existing Bitcoin holdings.

As a crypto investor, I’ve noticed some intriguing insights from Arkham data. It appears the US government is holding approximately 198,109 Bitcoins, valued at an impressive $19.33 billion. A recent transaction of $1.9 billion worth of Bitcoin to a new wallet has sparked speculation, leading many to wonder if they are considering cashing out these digital coins, potentially stirring up the market.

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2024-12-09 21:42