Peter Schiff Doubts That 1 Million Bitcoins Could Ever Pay Off the U.S. National Debt

Bitcoin's market cap would need to increase by over 20,000%, which is unrealistic. He also questions Bitcoin's global adoption and sees its value increased more by speculation than real demand.

Peter Schiff, an economist and gold enthusiast, has expressed skepticism regarding the notion that the U.S. government purchasing 1 million Bitcoins could lead to the payment of the country's national debt. Schiff highlights the astronomical increase in Bitcoin's value that would be necessary for this scenario to unfold.

According to Schiff, for the U.S. government to pay off the national debt, which currently stands at around $36.25 trillion, by purchasing 1 million Bitcoins, the total value of all Bitcoins would need to increase by over 20,000%. This scenario is highly unrealistic, especially considering the volatility and price fluctuations characteristic of Bitcoin.

Furthermore, Schiff points out that the U.S. debt continues to grow year after year, as the government borrows money to cover its expenses. This growth in debt makes the idea of Bitcoin paying it off even more far-fetched.

Schiff, who has consistently maintained a critical stance toward Bitcoin, asserting that it lacks intrinsic value and will not replace traditional money or assets such as gold, also questions the extent of Bitcoin's global adoption.

Despite the increase in Bitcoin's price, Schiff emphasizes the limited use of Bitcoin as a world currency. Only a handful of countries have adopted it as an official currency, and most governments are hesitant to replace their currencies with Bitcoin. According to Schiff, Bitcoin will never become the world's primary currency.

While some Bitcoin enthusiasts believe the cryptocurrency will continue to appreciate as more people adopt it, potentially reaching prices of $1 million per coin and becoming an alternative to traditional money, Schiff deems the notion of Bitcoin paying off the U.S. national debt highly improbable. The market capitalization required for such a scenario is too large, and the increasing national debt renders it even less feasible.

In Schiff's words, “Bitcoin is a speculative asset, and its value is driven by hope, not real demand.”

While Bitcoin may continue to experience growth for some, Schiff maintains that paying off the U.S. national debt is an unrealistic aspiration.