Introduction
Peter Schiff, a longtime Bitcoin critic known for labeling it a "national security threat," has surprisingly softened his stance in 2025. The economist now claims he "gets" Bitcoin but remains skeptical of USD-pegged stablecoins, advocating instead for gold-backed alternatives. This shift aligns with broader corporate adoption of Bitcoin as a reserve asset.
Schiff’s Evolving Perspective on Bitcoin
From Critic to Cautious Acknowledgment
- Past Rhetoric: Schiff previously warned against Bitcoin’s volatility and questioned companies like MicroStrategy for investing heavily in it.
- 2025 Shift: In a recent CryptoTwitter post, Schiff stated he now understands Bitcoin’s value proposition, though he stopped short of endorsing it.
👉 Why Bitcoin adoption is surging in 2025
Schiff’s Critique of USD Stablecoins
Questioning Fiat-Backed Models
Schiff argues that stablecoins pegged to "flawed fiat currencies like the dollar" lack inherent trust. Key points:
- Proposal: He suggests creating a gold-backed stablecoin, humorously dubbed "SchiffCoin" by followers.
- Market Reality: Gold-backed stablecoins currently hold just $2B** of the **$261B stablecoin market, dominated by USD-pegged options like Tether (USDT).
Gold vs. Fiat Stablecoins: A Snapshot
| Metric | PAX Gold (PAXG) | Tether (USDT) |
|---|---|---|
| Market Cap | $870M | $155.9B |
| 24-Hour Volume | $207M | $69B |
Industry Reactions and Regulatory Context
The GENIUS Act
Schiff’s comments follow the US Senate passing the GENIUS Act, the first major crypto regulation. Galaxy Digital CEO Michael Novogratz praised the bill, contrasting Schiff’s skepticism.
Mixed Responses
- Novogratz: Calls the Act a gateway for institutional crypto adoption.
- Schiff: Continues to tout precious metals, recently stating, "It makes no sense to buy Bitcoin when you can buy silver."
FAQs
1. Why did Peter Schiff change his mind about Bitcoin?
Schiff’s shift reflects growing corporate Bitcoin adoption, though he remains critical of its long-term viability compared to gold.
2. What are gold-backed stablecoins?
These are cryptocurrencies pegged to physical gold reserves, like PAX Gold (PAXG), offering a hedge against fiat inflation.
3. How significant is the GENIUS Act for crypto?
The Act establishes a regulatory framework for stablecoins, potentially accelerating Wall Street’s involvement in crypto markets.
👉 Explore gold-backed stablecoins
Conclusion
While Schiff’s newfound "understanding" of Bitcoin marks a notable pivot, his preference for gold underscores enduring divides in the crypto debate. As regulations like the GENIUS Act unfold, the clash between fiat and commodity-backed models will intensify.
### Keywords:
- Bitcoin adoption
- USD stablecoins
- Gold-backed stablecoins
- Peter Schiff
- GENIUS Act
- Crypto regulation
- PAX Gold
- Tether