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Economist and outspoken Bitcoin critic Peter Schiff has warned that if the US government were to adopt Bitcoin as a national reserve, it could lead to a weakening of the dollar. He argues that massive government purchases of Bitcoin by printing new money could inflate the money supply and create an economic bubble.

Schiff believes that Bitcoin’s recent surge to $100,000 was the result of political lobbying and government support, not organic market demand. He has criticized the proposal to create a national Bitcoin reserve, which would require the government to buy large amounts of Bitcoin annually, warning that it could lead to a financial crisis and reduce investor confidence in the US dollar.

Schiff worries that government support for Bitcoin could lead the US into an economic bubble.