Peter Schiff gives his insights into an array of issues, from cryptocurrency’s latest bull cycle, Trump’s recent election win and the trade protectionist policy that will likely follow and potential disruptions to global trade.
Trump has pledged to make the US the cryptocurrency of the world.
The blockchain network is already powering digitalization, from smart contracts, already used by a central bank to sell bonds directly to investors, saving millions in broker commission to NFTs where artists, musicians and any intellectual property and creative works can be digitized and sold directly on the network to the public for tokens.
Blockchain technology creates coins and alternative forms of currency, the most famous being Bitcoin and Dogecoin.
Trump has also joined the crypto scene with his platform, first ridiculed, World Liberty Financial.
But it is a case of he who laughs well laughs last.
“We’re leading a financial revolution by dismantling the stranglehold of traditional financial institutions and putting the power back where it belongs: in your hands,” according to the website.
“We’re leading a financial revolution by dismantling the stranglehold of traditional financial institutions and putting the power back where it belongs: in your hands”
World Liberty Financial (website)
Blockchain technology, an emerging technology, is already decentralizing institutions, bypassing the middleman and creating opportunities for those creative enough to know how to use the technology. Cryptocurrencies, the technology underwriting, it is no fad.
There are already case studies where the technology-assisted in reducing costs, from the ECB selling bonds directly to investors and cutting commission costs to the arts making money selling tokens.
We can’t find a case study where AI has proven its value in the business world, bearing in mind the world’s largest fast food chain, Mcdonald’s ditched their AI self-service in the summer of 2024, preferring human customer service.
Peter Schiff gives his insights into cryptocurrencies, which remain fixed and cynical despite countless real-life examples where it was successful
“Over the years, #Bitcoin promoters have corrupted many. When #Trump was not running for office, he spoke honestly about Bitcoin. He said it had no value, was based on thin air, was not a currency, could undermine the US dollar, and was a threat to the American financial system,” posted Peter Schiff on X.
“Over the years, #Bitcoin promoters have corrupted many. When #Trump was not running for office, he spoke honestly about Bitcoin. He said it had no value, was based on thin air, was not a currency, could undermine the US dollar, and was a threat to the American financial system”
PETER SCHIFF
Part of evolving is assessing current developments, reassessing the situation and forming a fluid view.
Bitcoin has tacit value in the digital age when digital work is then converted to digital codes, and the worker is remunerated in digital codes.
Scarcity determines Bitcoin’s value as its supply is fixed and regulated by an algorithm, not the whims of central bank monetary policy.
The grandad of cryptocurrencies is the most globally known currency, and its divisibility, portability and neutral political nature give it tremendous potential.
How many times have you heard that the dollar is tainted with blood?
You can’t say the same about cryptocurrencies.
The smartphone generation holds a digital wallet to store digital credit cards and digital assets.
So, in the digital age, Bitcoin has tacit value, and its global potential growth could be immense.
El Salvador’s decision to store its reserves in Bitcoin when trading at around 40,000 USD was ridiculed, but today, its BTC holdings are a lifeline.
In the wake of Blackrock advising investors to hold 25% of their portfolio in Bitcoin, a few months back, there is even chatter that the incoming administration wants to build a Bitcoin strategic reserve.
“High tariffs harm the citizens of the imposing nation the most, as they reduce the supply and increase the price of goods, thus lowering the standard of living” – Peter Schiff
Peter Schiff gives his insights into cryptocurrencies, which are outdated and irreconcilable in the digital age
The History of Money: Strange Things Used as Currency, makes an interesting read.
Peter Schiff gives his insights into tariffs, arguing that it could be inflationary.
“High tariffs harm the citizens of the imposing nation the most, as they reduce the supply and increase the price of goods, thus lowering the standard of living. Foreign producers also lose, as they sell their goods to other customers at lower prices.
Foreign consumers in the exporting nation also suffer as their gain from comparative advantage diminishes. As a result, they earn less foreign exchange needed to buy more efficiently produced imports. However, foreign consumers in other nations benefit, as they buy goods subject to tariffs in other nations at lower prices. In the case of US tariffs, the rest of the world ends up much better off, as the excess dollars they earn are loaned back to the US, in the form of Treasuries or other dollar-denominated debt. So, as tariffs reduce their US trade surpluses, they lend the US less money. Since the US will ultimately default on that debt, or more likely inflate away its value, the fewer resources they waste trading goods for dollars, the better off they will be later. In the short run, they consume the goods Americans can no longer afford to buy. That beats stockpiling depreciating dollars any day,” he posted on X.
But in the long run, tariffs bring back manufacturing and jobs into the US.
“we need to devote a lot of resources to rebuilding factories, developing supply chains, and training workers” – Peter Schiff
Peter Schiff gives his insights into Trump tariffs
He argued that these Tariffs have been in effect for years, and the manufacturing recession continues, with millions more manufacturing jobs lost.
But the manufacturing recession could be a case of the most aggressive Fed tightening in decades. Manufacturing requires capital-intensive investments in plant and machinery, which is difficult to finance in a tight credit environment.
“The result is we need to devote a lot of resources to rebuilding factories, developing supply chains, and training workers. That will cost a lot of money, requiring consumers to spend less and save a lot more to pay for it. That means a recession and much higher prices,” posted Peter Schiff.
The other side of the argument is that building a productive economy leads to a sustainable economy with well-paying and stable employment.
The US in the 50s had a strong manufacturing backbone, leading to a consumer boom.
Workers who feel secure in their jobs consume, spinning the economic wheels. Economic growth would be the best way out of the debt hole, and that road starts with businesses making productive investments.
