A financial commentator warned that Bitcoin could potentially weaken the US dollar if the government would intervene in the cryptocurrency.
Economist Peter Schiff believes that if the American government decided to adopt the firstborn crypto, it would have an adverse effect on the greenback by inflating the money supply.
Unforeseen Consequences
Schiff, who is a known Bitcoin critic, said that there will be unforeseen consequences on the value of the US dollar once the US government continues its plan of intervening in the Bitcoin markets, which could lead to an unsustainable economic bubble.
The financial commentator believes that the surge in Bitcoin price is largely fueled by government intervention, saying that it might have a negative effect in the long run that could eventually lead to the collapse of the global currency.
In a post, Schiff argued that the cryptocurrency could destroy the US dollar because the government adopted it.
Ironically, #Bitcoin may end up destroying the dollar after all—not because it replaces the dollar as a global reserve currency, but because the U.S. government embraces Bitcoin, prints trillions of dollars to buy it, and fuels a larger bubble that squanders the nation’s wealth.
— Peter Schiff (@PeterSchiff) December 5, 2024
“Ironically, #Bitcoin may end up destroying the dollar after all—not because it replaces the dollar as a global reserve currency, but because the US government embraces Bitcoin, prints trillions of dollars to buy it, and fuels a larger bubble that squanders the nation’s wealth,” Schiff remarked.
According to him, a large-scale crypto adoption by the US government would mean buying Bitcoin with newly printed currency which could potentially inflate the money supply, adding that the US might end up in a large-scale economic bubble.
He added that such crypto interventio
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Author: Christian Encila
