Peter Schiff, investment broker and financial commentator, criticized both Donald Trump and the cryptocurrency industry this week, saying the U.S. is chasing decentralized Ponzi schemes while China is focused on real, productive sectors.
“Trump said he only cares about one thing: that America is #1 in crypto and China isn’t,” Schiff posted on X.
“China wants to be #1 in viable, productive industries. China has no interest in leading the world in decentralized pyramid or Ponzi schemes. That’s our thing.”
The post sparked a sharp reaction from crypto supporters. One person responded, “We decide what is viable and what isn’t. Trump and our generation have chosen Bitcoin, not gold, and now you gotta live with it.”
Schiff replied, “It’s not Trump’s decision to make. But I agree that the free market should decide.”
Trump Pushes U.S. Crypto Dominance
Schiff’s comments follow President Donald Trump’s recent push to position the U.S. as the global leader in crypto.
In a CBS interview, Trump said he wants to make sure America remains the top player in the digital asset space.
“I want to make crypto great for America. I don’t want China to be number one. China is getting into it very big,” Trump said.
China’s Stance Remains Unchanged
But multiple reports challenge the idea that China is racing ahead.
While Hong Kong has eased restrictions to encourage crypto trading, mainland China still bans crypto trading and mining.
The People’s Bank of China declared all digital asset transactions illegal in 2021.
Before the ban, China controlled over 70% of global Bitcoin mining, but that dominance collapsed after the crackdown.
Mining operations largely relocated to the U.S., helping the country become the new hub of crypto activity. This shift supports Trump’s claim that the U.S. is currently number one.
Crypto Becomes a Campaign Issue
Trump has made crypto a key part of his message on American leadership, connecting it to national strength and tech innovation.
His administration has proposed making the U.S. more crypto-friendly by simplifying taxes, setting clear rules for stablecoins, and encouraging mining.
Despite the political push, Bitcoin’s price has been shaky. After a post-reelection bump, it’s mostly stalled and recently slipped near the $100,000 mark.
Analysts say that if it drops below that level, it could fall further toward $93,000.
Despite massive purchases by major firms like BlackRock, which now holds around 1.5 million Bitcoins via ETFs, analysts warn that demand may not be strong enough to prevent further price declines.
Philosophical Divide Widens
In the end, Schiff’s jab highlights the growing divide: Trump sees crypto as a tool for American dominance, while Schiff sees it as a speculative house of cards.
And according to him, China wants no part in it.
IMAGE CREDIT: “Peter Schiff” by Gage Skidmore, via Flickr. Licensed under CC BY-SA 2.0. Image adjusted for layout.