Central Banks Dump Dollar for Gold—Peter Schiff Slams Bitcoin Hype

Global financial tensions are rising as central banks worldwide accelerate their purchases of gold. This move has reignited criticism of Bitcoin’s role in the future of finance, especially from well-known economist and Bitcoin critic Peter Schiff.

According to Schiff, foreign central banks’ increased demand for gold shows a lack of confidence in the US dollar’s long-term stability. He wondered why central banks are not using Bitcoin, especially if it will be the future of the financial system. In reply to accusations on social media, Schiff explained that customers buy Bitcoin while banks make money via fees.

Even though Bitcoin surpassed $111,000, Schiff continues to raise concerns. He stressed that many investors fail to realize the risk higher interest rates could pose. According to him, as bond yields climb, any weaknesses in the crypto market will be revealed.

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The American financial situation started to look less stable this week. The dollar index fell by 2.3 percent to close just over 99. Long-term Treasury bond yields climbed to more than 4.5 percent for 10-year bonds and above 5 percent for 30-year bonds. Schiff believes these trends indicate problems and predicted a fall in bond prices over the following days.

On the other hand, prices for gold and silver rose, contributing to Schiff’s belief that classic safe assets are winning favor. With volatile digital assets, central banks favor gold as a secure store of value.

Schiff Points to Debt and Credit Downgrades as Key Warning Signs

Schiff also blamed the recent market weakness on two significant developments. First, he criticized a newly passed spending bill by the US House of Representatives. He argued that the bill increased the national debt instead of addressing fiscal concerns. Schiff sarcastically called it the “big beautiful bill,” underscoring his disapproval.

Second, the credit rating agency Moody’s downgraded US government debt. Fitch and Standard & Poor’s took similar steps in recent years. Schiff expressed that the downgrade was past due to the country’s increasing financial problems.

If institutions lose confidence in the dollar, Peter Schiff believes that the price of gold, silver and platinum could keep increasing. His remarks point to a growing difference between some accepting digital assets and financial professionals being more cautious.

Schiff has consistently believed that central banks would move toward gold; recent events confirm this. The Bitcoin story does not yet convince him and continues to focus on the growing pile of debt, the ups and downs of markets, and the attraction of gold when times are doubtful.

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