Can Bitcoin Replace the Dollar? Tucker Carlson Challenges Peter Schiff in Fiery Crypto Debate

An old argument about the future of money re-emerged this week when U.S. media personality Tucker Carlson invited gold proponent Peter Schiff to a generalist discussion that linked Bitcoin, inflation, and the world position of the dollar in one.

Schiff has been a longtime critic of cryptocurrencies, and he used the interview as an opportunity to reiterate his opinion that Bitcoin is a speculative commodity with no use behind it other than to gain value.

He argued that if the proposal to establish a U.S. strategic position of Bitcoin was to provide a bailout to early adopters, it would be a taxpayer-funded bailout instead of a good monetary policy.

Schiff Slams Bitcoin Demand as Speculative Trade

Schiff pointed out that the reason Bitcoin is in demand is primarily because buyers believe they will be able to sell it later at a higher price, a phenomenon that he likened to the greater fool theory, but not a productive investment.

This exchange was carried out in a wider context of inflation and government expenditure.

Schiff told Carlson that the official inflation statistics do not represent the actual cost of living experienced by households, arguing that modifications to the Consumer Price Index have been continuously understating price inflation.

He claimed that increasing prices are commonly charged to corporations when they are rather a response to money and credit proliferation.

Schiff also attacked fiscal policy in both Democratic and Republican administrations, specifically criticizing the Big Beautiful Bill proposed by President Donald Trump as exacerbating the deficit by expanding government expenditure and reducing taxes.

Schiff dated much of the current economic strains to the termination of the gold standard in 1971, when the U.S. dollar was fully fiat.

He opined that the value of the dollar used to be pegged against gold and that decades of cheap interest and money printing have destroyed buying capacity and corrupted asset prices.

Gold Hits New Highs as Schiff Questions Bitcoin’s Safe-Haven Role

Changing world dynamics also featured in the interview.

Schiff argued that because the dollar is the leading reserve currency in the world, the United States has been able to run consistent trade deficits, effectively spending more than it produces.

He said that such an arrangement is straining because nations are reevaluating their exposure to the dollar, especially because sanctions on Russia have given people a real-life lesson about the dangers of holding dollar-denominated reserves.

He observed that central banks have diversified more into gold, and this has been evidenced by the recent price trends.

The global trade tensions and a rise of over 17% in January have started to push gold prices to new all-time highs of above $5,000.

By contrast, Bitcoin at one point dropped below $86,000 over the same time, a move that Schiff used as an excuse to say that investors are looking to buy traditional stores of value and not speculative ones.

Schiff Rejects Bitcoin as Dollar Alternative

When Carlson challenged Schiff on the reason why Bitcoin would not take the place of the dollar as confidence in fiat currencies craters, Schiff dismissed the notion.

He stated that bitcoin had no intrinsic value and non-monetary demand and was thus not a suitable reserve currency among central banks, which needed stability and mass liquidity.

In a statement, both fiat currency and Bitcoin are based on confidence, but gold is unique since it is a tangible good that is used in gold jewelry, electronics, aerospace, and medicine.

The debate was a broader discussion that was being enacted over financial markets and policy circles.

Proponents of Bitcoin are now more often arguing that it is digital gold because it has a limited supply and is non-sovereign, while the U.S. debt has risen to over $37 trillion.

The post Can Bitcoin Replace the Dollar? Tucker Carlson Challenges Peter Schiff in Fiery Crypto Debate appeared first on Cryptonews.