Bitcoin News: Peter Schiff Slams Bitcoin as Speculative Despite 27% Surge, Gold Miners Soar 61%
In the latest Bitcoin news, economist Peter Schiff has once again criticized Bitcoin as a speculative asset, despite its impressive 27% surge in 2025. Schiff, a well-known gold advocate, points to the Gold Miners Index’s 61% gain as proof that traditional assets still outperform cryptocurrencies. Is Bitcoin really just a bubble, or is Schiff missing the bigger picture?
Peter Schiff’s Harsh Critique of Bitcoin
Peter Schiff, founder of Euro Pacific Capital, has long been a vocal skeptic of Bitcoin. In his latest analysis, he dismisses Bitcoin’s role as “digital gold,” arguing that its scarcity is an illusion due to its divisibility into satoshis. Schiff emphasizes that Bitcoin’s recent surge past $120,000 doesn’t validate it as a store of value, calling it a speculative bubble.
Gold Miners Index Outperforms Bitcoin
Schiff highlights the Gold Miners Index (GDX), which has risen 61% in 2025 compared to Bitcoin’s 27% gain. He uses this comparison to challenge the logic of crypto-centric investments, stating that gold’s physical utility and historical acceptance make it a superior asset.
Is Bitcoin a Decentralized Ponzi Scheme?
Schiff goes further, criticizing Bitcoin’s energy-intensive proof-of-work mechanism and volatility. He suggests Bitcoin functions like a “decentralized Ponzi scheme,” driven by speculation rather than economic fundamentals. Despite holding a “Strategic Bitcoin Reserve” in his portfolio, Schiff clarifies that these holdings are managed by donors and will never be sold, underscoring his lack of personal belief in Bitcoin’s value.
Bitcoin’s Future in a Financial Crisis
Schiff predicts that the 2025 financial crisis will expose Bitcoin’s fragility. He argues that cryptocurrencies lack intrinsic value and will falter during systemic shocks, unlike gold, which he believes will thrive if the U.S. dollar weakens. His critique extends to crypto-friendly legislation, which he views as undermining the dollar’s dominance.
Critics Push Back Against Schiff’s Claims
Not everyone agrees with Schiff. Critics argue that Bitcoin’s decentralized nature and growing institutional adoption counter his characterization of it as a speculative “meme coin.” The debate highlights a persistent rift in financial discourse: are cryptocurrencies a paradigm shift or a fleeting trend?
FAQs
1. Why does Peter Schiff criticize Bitcoin?
Schiff views Bitcoin as a speculative asset lacking intrinsic value, contrasting it with gold’s physical utility and historical stability.
2. How does the Gold Miners Index compare to Bitcoin’s performance?
In 2025, the Gold Miners Index (GDX) rose 61%, outperforming Bitcoin’s 27% gain.
3. What does Schiff predict for Bitcoin in a financial crisis?
Schiff believes Bitcoin will collapse during a crisis due to its lack of intrinsic value, while gold will thrive.
4. Does Schiff own Bitcoin?
Schiff holds a “Strategic Bitcoin Reserve” managed by donors, but he has stated these holdings will never be sold, indicating no personal ownership.
5. What are the main criticisms of Bitcoin’s proof-of-work mechanism?
Schiff and others criticize its energy intensity and environmental impact, arguing it’s unsustainable compared to traditional assets.
