Serial Bitcoin basher and gold investor Peter Schiff has had a rare moment and change in stance on BTC in a recent tirade about the dire state of the US economy.
US Debt Out Of Control
There is no disputing the fact that US national debt is spiraling out of control. It has almost hit $23 trillion and is on track to hit $30 trillion by 2023 if the gloomy predictions play out. For the average citizen spending more than you earn can lead to problems fast. The US government, however, has had no qualms about continually spending more than it brings in as budget deficits also escalate.
As of the end of the government’s 2019 fiscal year, which ended on September 30, the national debt was up by roughly $1.17 trillion from the end of fiscal 2018. This marked the second straight year that it had risen by more than $1 trillion.
Goldbug and outspoken bitcoin detractor Peter Schiff appears to like the US president and the state of the economy even less.
The U.S. National Debt now exceeds $22.9 trillion, up close to $3 trillion since Trump took office. My guess is that after 3 full years in office the national debt will have risen by $3.5 trillion, and that by the end of Trump’s term it will have risen by well over $5 Trillion.
The U.S. National Debt now exceeds $22.9 trillion, up close to $3 trillion since Trump took office. My guess is that after 3 full years in office the national debt will have risen by $3.5 trillion, and that by the end of Trump's term it will have risen by well over $5 Trillion.
— Peter Schiff (@PeterSchiff) October 21, 2019
China is also rapidly cooling on the US as Trump escalates his rhetoric and trade war. According to RT, Beijing cut the holdings of US Treasuries by $6.8 billion in August, reaching the lowest level since May 2017.
Bitcoin Fixes This
In a rare pro-bitcoin response, Schiff added that BTC fixes this because you can’t print bitcoin to fund warfare and welfare programs. Bitcoin, just like gold, is finite and its total supply is mathematically coded into it.
Bitcoin was spawned from the last major global financial crisis where the banks by engaged in hedge fund trading with derivatives then demanded more mortgages to support the profitable sale of these derivatives. The sub-prime, or high-risk, lending effectively caused the collapse.
Just last week Schiff opined that this next recession will be far worse than 2008.
The economic collapse that is going to follow the bursting of this bubble is going to be far more dramatic than ’08.
Maybe he is finally coming around to the notion that yes, bitcoin is also a safe haven store of value just as gold is.
Will people turn to bitcoin when the recession hits? Add your thoughts below.
Images via Bitcoinist Media Library, Twitter: @PeterSchiff