Renowned economist Peter Schiff expressed doubts on Saturday that China would engage in a Bitcoin BTC/USD buying competition with the U.S., a view previously espoused by Senator Cynthia Lummis (R-WY).
What Happened: Schiff took to X, questioning the narrative of a potential Bitcoin ‘arms race’ between the U.S. and China.
“In January, Cynthia Lummis said that she thought China would get into the equivalent of an arms race with the U.S. over which nation could buy the most Bitcoin. I doubt it, especially if China was smart enough to have sold all of its Bitcoin during that month,” Schiff wrote.
The Bitcoin critic referenced a January report that detailed the Asian giant’s potential sale of nearly $20 billion in seized Bitcoin, although the claims have yet to be confirmed.
According to data from Bitcoin Treasuries, China is the second-largest government holder of Bitcoin behind the U.S., with 190,000 BTC, worth $16.33 billion as of this writing.
While cryptocurrency trading and mining remain banned in China, rumors have floated around that the country has been working behind closed doors to create a Strategic Bitcoin Reserve on the lines of the U.S.
See Also: Cathie Wood Believes Most Memecoins Will Face ‘Fearsome Declines,’ But They Could End Up Becoming Collector’s Items
Why It Matters: Schiff’s comments added to his ongoing critique of Bitcoin and the U.S. government’s approach to the leading cryptocurrency. He previously warned that a Strategic Bitcoin Reserve could lead to more Americans losing money in cryptocurrency than in any other speculative mania in history.
He also predicted that the reserve could accelerate the demise of the U.S. dollar, with gold emerging as the ultimate winner.
In fact, Schiff even established his own strategic Bitcoin reserve, pledging not to sell any of it as a way to mock President Donald Trump’s declaration. As per on-chain data, the so-called reserve holds $4,534.24 in Bitcoin at the time of writing.
Price Action: At the time of writing, Bitcoin was exchanging hands at $86,078.93, up 2.36% in the last 24 hours, according to data from Benzinga Pro.
Image via Shutterstock
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