President Donald Trump’s growing support for Bitcoin has attracted acute criticism from economist Peter Schiff. Peter Schiff warns that the move could weaken the dollar.
Schiff posted on X that he “puts additional pressure on the dollar” to exchange dollars for Bitcoin, calling spending on cryptocurrency “harmful to our country.”
Reports say Trump believes Bitcoin will lift jobs and ease the burden on the dollar, but Schiff says the opposition may be true.
Trump and Bitcoin: Impact on Dollar Demand
According to Peter Schiff, when people trade Bitcoin for US dollars, they pull demand away from the world’s major reserve currencies.
Bitcoin prices have risen by more than 30% this year, with some viewing them as shields against inflation. Schiff argues that sales of these dollars will reduce the greenback status.
He warned that if trends grow, the broader economy could feel the impact.
To pander to his donors and promote his family business, Trump insisted that Bitcoin “puts pressure from the dollar and is good for the country.” However, selling dollars to buy Bitcoin puts additional pressure on the dollar. Also, wasting resources with Bitcoin is harmful to our country.
– Peter Schiff (@peterschiff) June 28, 2025
Government and state preparations
Based on the report, the federal government does not plan direct dollar sales. Instead, they use funds from criminal and civil forfeitures to build strategic Bitcoin reserves.
At least 10 states are following along, including Texas and Florida. They put their capital aside to buy and hold crypto on their balance sheets. That shift means that government units could be tied to unstable assets.
Trump Media’s Cryptography Strategy
Trump Media, a private venture by US President Donald Trump, raised $2.3 billion through stock offerings and convertible memos to fuel the Bitcoin Treasury Department.
In May, a White House event hosted the top holder for the “Trump” meme coin. Participants spent nearly $150 million on their seats at dinner.
Critics say the family has already won over $1 billion from Crypto Ventures. These numbers show how deeply the campaign courts the Crypto community.
Political and financial risks
Peter Schiff suggests that Trump’s code push is not about monetary policy, but about seducing wealthy donors.
He described the fundraising event as “a ploy to attract crypto-based support.” At the same time, the volatility of the Bitcoin market poses real financial risks. A sudden price drop could leave you with loss-bound sanctuaries rather than stock.
Recent investments in Defi
Another Trump family business, World Liberty Financial, has secured a $100 million investment from Aqua 1 as part of its plan to expand its decentralized finances.
Trump Jr. said that bank cuts forced his family into cryptocurrency, but many viewed the move as a fresh funding bid. The deal highlights families are putting a big bet on the emerging crypto sector.
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