Bitcoin BTC/USD critic Peter Schiff is warning that the strategic Bitcoin reserve is a tool to trick Americans into speculative losses.

In an X post on Thursday, Schiff slammed the strategic Bitcoin reserve, stating that it exists solely to “scam” more Americans into buying crypto.

Peter Schiff, a well-known Bitcoin BTC/USD critic, continues to slam the cryptocurrency, this time focusing on the strategic Bitcoin reserve as a tool to deceive Americans into speculative losses.

What Happened: Taking to X (formerly Twitter) on Thursday, Schiff expressed his disdain for the strategic Bitcoin reserve, which he believes is designed to scam more Americans into engaging in crypto.

"The point of the strategic Bitcoin reserve is to scam more Americans into buying the cryptocurrency," Schiff stated in a post.

During his presidency, Donald Trump displayed a pro-crypto attitude, which might have led more investors to engage in crypto than any other speculative mania in history, according to Schiff.

"Those who heed his advice will lose more of their savings and retirement funds in the ensuing crypto crash than they did in the dot-com bubble or any other speculative mania in U.S. history. They will be scammed out of their money in a new and original way, befitting the times," he added.

As a perfect example, Schiff highlighted the TRUMP TRUMP/USD meme coin, which is currently down 80% from its peak.

"Everyone who knows anything about crypto knows that President Trump is a fan of Bitcoin, and he keeps saying that he prefers it to gold. So, naturally, when a TRUMP token was created earlier this year, it quickly became very popular," explained Schiff.

According to Schiff, investors bought into TRUMP, expecting it to benefit from Trump's popularity and his administration's decision to invest in Bitcoin for the strategic reserve. However, they failed to recognize that it was a classic "greater fool theory" scenario.

"They thought that someone would pay more for the token later. But no one is going to buy a worthless token just because it has the former president's name on it, especially if it's already gone up a lot and everyone is talking about it," asserted Schiff.

Price Action: TRUMP is down 30% over the past month, while Bitcoin has dropped 10% and XRP eroded around 9% over the same time frame.

Also Read: Peter Schiff Blasts Government Crypto Investments As ‘Waste of Resources’

Why It Matters: This isn't the first time we've seen Schiff poking fun at crypto. In an X post on January 30, Schiff teased the creation of a meme coin and stated that he has made something better—an ordinal, the Bitcoin equivalent of an NFT.

In another post on January 19, Schiff suggested the Trump Media & Technology Group should follow Strategy's Bitcoin strategy but with TRUMP tokens. He proposed issuing convertible notes to acquire more TRUMP, creating a self-reinforcing cycle of price appreciation and capital expansion.