Monday, economist Peter Schiff has questioned the American government’s decision to hold Bitcoin BTC / USD Like a reserve asset in the middle of the continuous crisis of the Apex cryptocurrency.
What happened: Schiff brought X to emphasize that the Bitcoin market value plunged 30% compared to its January record, lowering below $ 77,000.
“It is difficult to see the justification of the American government holding Bitcoin as a reserve asset when it can lose so much market value so quickly,” said Schiff. “The justification will be even more difficult to see a decrease of 50%.”
The donors of the SAFE HAVEN de Bitcoin story funds have taken action, with a award -winning investment manager Michael A. Gayed Write “Store of Value” in response to Schiff’s message.
Over the past five years, Bitcoin has won 1,408% and 243% in the past two years.
However, Schiff was quick to applaud. “If the price can drop by more than 30% in less than two months without anything really happening, how can it be a store of anything. What if the government held Bitcoin in reserve and was to sell it? »»
In addition, Schiff has thought about the fate of the Bitcoin Strategic Reserve and the stock of digital assets, both created by presidential decree last week, without approval from the congress. He asked what would happen if Donald Trump The president of the successor decided that the United States did not need such a strategic Bitcoin reserve or a stock of cryptography and decided to “sell everything”.
See also: Microsoft may have given Bitcoin Investments a lack but a large MSFT stock holder is a strong crypto, Advocate Blockchain
Why is it important: Schiff’s comments come in the context of his continuous criticism of the government’s decision to create a Bitcoin strategic reserve. He previously predicted that this decision could damage the US dollar.
He also marked such investments “Resource farm”, “ Arguing that they divert the capital of the real creation of wealth.
The cryptocurrency market extended the losses on Monday as Bitcoin collapsed below $ 77,000 To reach a four -month hollow
Action: At the time of writing writing, Bitcoin exchanged hands at $ 79,434.23, down 3.47% in the last 24 hours, according to Benzinga Pro data.
Image via Shutterstock
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