Peter Schiff proposed that Social Security sell $2.7 trillion in Treasuries for Bitcoin, potentially covering future shortfalls if Bitcoin reaches $20 million.
Peter Schiff, a longtime critic of Bitcoin, recently proposed an odd idea that suggests Bitcoin could be the key to addressing the issue of Social Security funding in the United States, the Social Security Trust Fund should sell off its $2.7 trillion worth of holdings in the United States Treasury and use the profits to buy Bitcoin.
Peter Schiff’s Bold Plan for Social Security’s Financial Stability
Schiff contends that this measure has the potential to overcome the expected budget shortages of Social Security and ensure the organization’s existence. In a lengthy essay on X, Peter Schiff revealed his new perspective on how Bitcoin could be used to address the financial challenges that Social Security is currently facing from a financial standpoint.
Peter Schiff put out the idea that the Social Security Trust Fund should sell its $2.7 trillion worth of United States Treasuries and then reinvest the proceeds into the cryptocurrency.
In the event that the price of Bitcoin reached $20 million per coin, he predicted that such a move might increase the assets of the Trust Fund to more than $100 trillion on the market. There would be a surplus that would be sufficient to meet the expected financing gap of $23 trillion for the program over the following 75 years if this were to occur.
Due to the fact that Schiff’s plan calls for the Social Security Trust Fund to acquire Bitcoin, this buying pressure has the potential to drive the price of Bitcoin up significantly. In his proposal, he argued that the Trust Fund might develop a sustainable asset basis by acquiring a 25% interest in the total supply of the cryptocurrency.
The financial analyst continued by saying that in order to answer concerns regarding liquidity, Peter Schiff acknowledged the difficulties associated with selling Bitcoin holdings without having an effect on the market. As a result, he suggested that the government consider the digital currency a reserve asset.
“The Trust Fund could then use all the Social Security payroll taxes it collects to buy more Bitcoin, supporting the price of Bitcoin and maintaining the value of its only asset.”
In this hypothetical situation, the digital currency holdings of the Trust Fund might be used as collateral at the Federal Reserve, which would enable the Trust Fund to obtain the necessary funds to meet its Social Security obligations without having to sell the cryptocurrency itself. This technique ensures cash flow for benefits, while the cryptocurrency stays on the Federal Reserve’s balance sheet.
“This arrangement is better for the government than the Fed holding Treasuries, as it doesn’t have to pay interest on Bitcoin, nor is there principal to repay. The Fed can simply HODL Bitcoin on its balance sheet indefinitely—the ultimate diamond hands. After Bitcoin fixes Social Security, the government can move on to fixing everything else with Bitcoin.”
This would benefit the government, according to the analyst. His explanation was that, on the other hand, the financial analyst had previously voiced a strong opposition to the idea that President-elect Donald Trump had proposed to establish a Bitcoin reserve in the United States.
Peter Schiff said that the strategy had the potential to destabilize the economy and would have a negative impact on the value of the United States dollar over the long term.
Furthermore, the critic of Bitcoin, who is well-known for his advocacy of gold, has in the past referred to Bitcoin as “anti-gold,” highlighting the fact that, in contrast to gold, it does not possess value or stability.
However, Peter Schiff’s most recent proposal demonstrates a shift in his perspective toward the cryptocurrency. According to what he said, “I am finally coming around.
