Peter Schiff-Inspired USAcoin Cryptocurrency Sprouts With $2.8M Market Cap

The creators of the cryptocurrency USAcoin (USACOIN) were inspired by Schiff, who advised the U.S. government to consider the possibility of a strategic USAcoin reserve rather than a Bitcoin (BTC) reserve.

Influential economist Peter Schiff's cheeky remark on Sunday spawned a new cryptocurrency that already has millions added to its capitalization.

What Happened: A group of cryptocurrency enthusiasts were inspired by Schiff's suggestion to the U.S. government to consider a strategic USAcoin reserve over a Bitcoin (CRYPTO: BTC) reserve.

The cryptocurrency, called USAcoin (CRYPTO: USACOIN), had a market valuation of about $2.80 million, with over $7 million in trading volume in the last 24 hours, according to CoinMarketCap.

Reacting to the new coin, Schiff clarified that he doesn't endorse it. “My post was sarcastic — don't buy it,” the staunch Bitcoin critic said. However, he stood by the idea behind proposing such a cryptocurrency.

Someone actually created a #USAcoin. My post was sarcastic—don't buy it. However, my point was that if the U.S. government created such a token and committed to building a strategic USAcoin reserve, it would make more sense than stockpiling #Bitcoin. That part wasn't a joke.

On Saturday, Schiff floated the idea of a new government-backed cryptocurrency with a supply limit of 21 million, similar to Bitcoin, but one that has value and can be used for payments.

No prizes for guessing — the new USAcoin also shows a supply cap of 21 million but was yet to be validated.

Instead of creating a Bitcoin strategic reserve, the U.S. could save a lot of money by creating USAcoin. Just like Bitcoin, the supply can be capped at 21 million, but with an upgraded blockchain to make USAcoin actually viable for use in payments. This way we can all get rich.

See Also: MicroStrategy's Aggressive Bitcoin Strategy Raises Eyebrows In Crypto Community

Why It Matters: Schiff has slammed the idea of a strategic Bitcoin reserve, even calling it “treason" and the "worst monetary mistake" the U.S. could make. He has argued that Bitcoin is not a viable reserve asset due to its market volatility.

A gold advocate, Schiff strongly opposes Bitcoin, stating that it has no fundamental value and is destined to fail.

While Schiff has admitted to regretting not buying Bitcoin when it was around $1, he said this doesn't mean he would buy it now.

Price Action: At the time of writing, Bitcoin was trading at $93,808.60, down 3.16% in the last 24 hours, according to Benzinga Pro.