Bitcoin is now a national security threat to the US.

Prominent gold advocate and long-time Bitcoin skeptic Peter Schiff has commented on the major cryptocurrency.

On X (formerly Twitter), Schiff said “Bitcoin has become a national security threat.”

Peter Schiff Bitcoin Slam

In the article, Schiff called bitcoin a national security threat, citing government bribery, and said buying BTC was a waste of money.

“It's one thing when private citizens willingly waste their own money buying bitcoins. But it crosses the line to waste public money by bribing government officials. Bitcoin is now public enemy number one,” Schiff said.

This provocative statement comes amid growing discussions about Bitcoin's role in the global economy. Increasing adoption by institutional investors is also a significant development, with Bitcoin ETFs (exchange-traded funds) said to have surpassed Satoshi Nakamoto's estimated 1.1 million BTC holdings.

Schiff's critique focuses on Bitcoin's ability to divert capital away from productive sectors, exacerbating economic inefficiencies. He explained this in his next article.

“…Bitcoin has become a real threat to America, not gold. The concern is that the government will waste the public's money by buying them, in the process diverting more capital to bitcoin and blockchain-related businesses at the expense of productive businesses.

Schiff, who has a history of championing gold as a store of value, recently called Bitcoin's rise “the biggest bubble in history.” While Schiff acknowledges Bitcoin's appeal as an investment, he sees it as inherently flawed, lacking the intrinsic value that gold supplies.

Despite constant criticism, Bitcoin's price and adoption defied predictions, much to the delight of cryptocurrency fans. ETF Store President Nate Geraci responded sharply to Schiff's latest comments.

“In just 11 months, Bitcoin went from a shipwreck to a national security threat… you'd love to see,” Gerasi said.

The Bitcoin debate heats up

Schiff's labeling of bitcoin as a “national security threat” raises broader concerns about cryptocurrency's role in financial markets and governance. Critics of Bitcoin often point to its misuse in illegal activities and its competition with sovereign currencies. On the other hand, supporters argue that it represents money creation and inflation.

As the debate surrounding Bitcoin continues, Schiff remains the voice many in the cryptocurrency community like to oppose. The constant focus on Bitcoin, as it beats gold, reflects the growing popularity of digital assets in economic discourse.

Meanwhile, Schiff's stance resonated with some, including X user JB, who reposted Schiff's original message verbatim, echoing his concerns. However, many others in the cryptocurrency space dismiss these claims and point to broader economic issues. Responding to Schiff's statement, prominent Bitcoin advocate Eric Voorhees commented sarcastically.

“Yes, Bitcoin is the problem, not $36 trillion in debt,” the user said.

Schiff's comments follow Trump's sarcastic suggestion that the media should invest in bitcoin. It is worth noting that the Bitcoin critic is one of those who endorsed Donald Trump for the 2024 US presidential race, adding complexity to the public figure.