This was in response to Tom Lee of Fundstrat, who said that BTC could help solve the U.S. budget deficit. In a recent CNBC live, Lee suggested that if the cryptocurrency is added to the list of reserve assets, it could help offset some of the nation’s massive $36 trillion debt because of its potential to appreciate in value.
He also pointed out that traditional ways of reducing the deficit, such as changing tax policy or cutting spending, may not be enough on their own in the current economy. Therefore, Bitcoin could be a useful asset for the U.S. Treasury and help manage the debt, the expert argued.
Such a scenario, according to Schiff, would defeat the purpose of a strategic asset intended to stabilize or enhance fiscal resilience. He argued that Bitcoin’s volatility and illiquidity make it unsuitable as a serious reserve asset and cautioned against what he sees as misplaced optimism about its use by governments.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
