Peter Schiff: Trump’s Bitcoin Race With China Is a ‘Waste of Capital’
Economist and gold advocate Peter Schiff recently dismissed President Donald Trump's ambition to outcompete China in the cryptocurrency space, stating that the "Chinese leadership is too smart to care about Bitcoin". Schiff's remarks, made on February 4, 2026, argue that the U.S. is "wasting capital and resources" on digital assets while China focuses on industrial growth and gold accumulation.
Key Arguments from Peter Schiff
Schiff’s critique centers on what he views as a strategic misallocation of American resources compared to Chinese priorities:
Wasted Resources: He claims that the push to make the U.S. the "Bitcoin capital of the world" diverts capital away from productive sectors like manufacturing.
China's Focus on Gold: Schiff noted that while the U.S. promotes crypto, China has aggressively ramped up its gold reserves, marking 14 consecutive months of purchases as of early 2026.
The "Futile" Competition: He slammed Trump's argument that the U.S. must dominate blockchain technology to prevent China from leading, asserting that Beijing has no interest in Bitcoin given its 2021 ban on trading and mining.
Context: Trump vs. China Crypto Stance (2026)
The debate comes amidst a volatile period for the crypto market in early 2026:
Trump’s Policy: President Trump continues to advocate for a Strategic Bitcoin Reserve and pro-crypto regulations to maintain American technological dominance over China.
China’s Stance: Beijing remains committed to its total ban on cryptocurrency transactions, recently reaffirming this stance in response to renewed trading activity and stablecoin risks. Instead, China is prioritizing its central bank digital currency, the Digital Yuan.
Market Sentiment: Schiff's comments coincided with a "brutal sell-off" in February 2026, where Bitcoin nearly erased all gains made since Trump's second inauguration.
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