Trump the tulip king? Schiff likens crypto to 1630 ‘madness’

The Golden Evangelist Peter Schiff sees Red on Bitcoin – and he blames President Donald Trump for finishing a “decentralized Ponzi program” in the American flag.

Schiff argued that the advocacy of Trump cryptography accelerates the collapse of the dollar while creating false legitimacy around digital assets.

“By promoting interior investments in Bitcoin and Crypto, Trump helps undermining the American economy and accelerating the collapse of the dollar,” published Schiff on X.

He predicted that while Bitcoin (BTC) Supporters can initially celebrate the weakness of the dollar, gold will ultimately benefit while “Bitcoin will also crash”.

“Decentralized Ponzi scheme”

Schiff rejected The recent cryptocurrency bills were trying to “hide Bitcoin – Nothing more than a decentralized Ponzi program – in the external signs of legitimacy”. He accused the initiates of the industry of the use of legislation to beat digital assets during planning that comes out at higher prices.

“The industry uses them for bracing media and other cryptos so that initiates can withdraw at higher prices. This is a low legislative point,” wrote Schiff.

The criticism of the economist extends to Stablecoin’s initiatives, which he considers as ineffective tools to maintain the domination of the dollar.

Schiff Argued that stablecoins can be supported by any fiduciary currency and provide no advantage of inherent stability.

“The bracing media that Stablecoins will help guarantee the domination of the US dollar in world trade is nonsense,” said Schiff. He pointed out that the stablecoins supported in dollars are as stable as the underlying currency, warning that “this” stability “will cede soon.”

‘The madness of crowds’

Schiff invoked the “extraordinary popular delusions of Charles Mackay and the madness of crowds” to compare bitcoin and digital assets with the Dutch tulip bubble.

He cited Mackay’s observation that “each age has its particular madness” and identified digital tokens such as the illusion of the current era. Schiff cited:

“They go crazy in the herds and only slowly recover their senses, and one by one.”

The Dutch tulips of the 1630s was a speculative frenzy in which the prices of the tulip bulbs climbed to extreme heights before collapsing overnight, leaving many investors with valuable contracts. Often quoted as the first financial bubble recorded, it has become a lasting symbol of the irrational market mania.

Schiff noted that the Dutch company had once neglected the ordinary industry for the Tulip trade and led to direct parallels to the adoption of Bitcoin.

“Simply replace Tulip with Bitcoin, and that sums it up perfectly,” concluded Schiff.

The economist’s warnings reveal his broader skepticism about monetary systems that are not supported by gold and his conviction that cryptocurrency represents a dangerous speculative distraction of solid economic policy.