Financial commentator Peter Schiff has predicted that the U.S. will not be buying any Bitcoin.
“The U.S. will not buy any Bitcoin, and neither will other nations. Their leaders are not that dumb,” Schiff commented.
The U.S. established a strategic Bitcoin reserve in early March. However, there is a catch: the reserve will be initially focused on holding the forfeited coins. Treasury Secretary Scott Bessent stated that the government could explore avenues for purchasing Bitcoin, but he stressed that the initial focus would be on halting the sales of the tokens that are already in the government’s possession.
The odds of the U.S. creating a national Bitcoin reserve in 2025 have now dropped to just 51%. This market, which already has $2.5 million in volume, will resolve to “Yes” only if the U.S. government acquires additional coins on top of top of the confiscated ones.
Bloomberg previously estimated that there is only a 30% chance of the U.S. government actually buying BTC this year. The unlikely purchase could be financed with the Exchange Stabilization Fund (ESF).
Meanwhile, the strategic Bitcoin reserve race is heating up among individual states, with Arizona seemingly racing ahead of other contenders.
Schiff, of course, has been a staunch critic of the Bitcoin reserve initiative, ridiculing the idea that it could kickstart a new “arms race” with China.
However, he will refrain from selling his own modest Bitcoin reserve that consists of contributions from community members because he wants to set an example of what you are not supposed to do.
