A major financial crash is approaching, which will be worse than 2008, economist Peter Schiff said in a series of posts on X, leaving Bitcoin investors and holders of U.S. dollar–denominated assets “substantially poorer.”
Schiff said holders of precious metals and non-dollar assets are likely to benefit from the downturn, as macroeconomic imbalances, rising debt levels and what he views as misguided U.S. policy decisions set the stage for a severe financial reckoning.
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Bitcoin Losing Value
In one post, Schiff warned that both crypto and dollar-based assets face a bleak outlook.
“By the end of the year, holders of U.S. dollar–denominated assets and cryptocurrencies, including Bitcoin, will be substantially poorer than they are today,” Schiff wrote.
“In contrast, holders of non-dollar–denominated assets and precious metals will be significantly richer. Which will you be?”
Schiff has long argued that Bitcoin lacks intrinsic value and will fail as a store of wealth during periods of economic stress.
He said the coming downturn would be particularly painful for Bitcoin investors who bought the asset as a hedge against inflation and financial instability.
“It’s going to be very frustrating and unfortunate for Bitcoin HODLers, who actually bought Bitcoin for the same reasons I bought gold and silver, to see all the economic forecasts we had in common come true, but to end up losing more money than people who did nothing to prepare,” he said.
A 2026 Financial Crash “Worse Than 2008”
Looking ahead, Schiff predicted a financial crash in 2026 that he said would surpass the 2008 global financial meltdown, though with a different geographic impact.
“The main difference between the 2026 financial crisis and the 2008 financial crisis, other than the fact that this one will be much worse, is that it won’t be global,” Schiff wrote.
“The rest of the world will actually benefit as the burden of supporting the U.S. consumer economy will be lifted.”
Schiff also urged investors to reconsider portfolios heavily weighted toward U.S. stocks, bonds, cash and crypto.
“If your financial advisor has you over invested in U.S. stocks or bonds, underexposed to foreign stocks, sitting on lots of cash, holding any Bitcoin, or lacking exposure to physical precious metals and mining stocks, then it’s time to hire a new advisor,” he said.
Schiff is chairman of Euro Pacific Capital and operates a precious metals business, positions that critics say align closely with his investment views.
Sharp Criticism of Trump
In separate posts, Schiff criticized U.S. President Donald Trump and his economic approach, arguing that a lack of understanding of global trade dynamics has worsened America’s position.
“There’s an old expression: ‘Don’t bite the hand that feeds you.’ Donald Trump didn’t just bite the hand that has been feeding the U.S.—he bit it off,” Schiff wrote.
“The main problem for Trump and the economic ignoramuses in his cabinet is a complete lack of understanding of who is feeding whom.”
Schiff’s latest remarks come after a recent public feud with Trump.
In early December, Trump criticized Fox News for featuring Schiff, describing him as a “Trump-hating loser” and a “stockbroker” who “has already proven to be wrong.”
Trump said Schiff had mischaracterized the direction of the U.S. economy, insisting that prices were falling rather than rising.
“Gasoline hit $1.99 a gallon yesterday in certain states, and is down big since Biden. Other prices are almost all down,” Trump wrote.
Trump said his administration was addressing what he called an “affordability crisis,” adding that “much of it, like the border, is already fixed.”
He also criticized the television program’s producers, writing: “Check out the ‘booker’ who put this jerk on!”
Schiff responded shortly afterwards, claiming Trump was lashing out due to him highlighting the economic risks he associates with Trump’s policy agenda.
“President Trump lashed out on Truth Social after I appeared on Fox & Friends Weekend and warned that Trumponomics is fueling bigger deficits, rising prices, and worsening affordability,” Schiff said.
The economist also challenged Trump to a public debate on economic policy.
“Since Trump called me a jerk and a loser for claiming that prices are still rising when he insists they’re coming way down, I challenge him, or his designee, to a debate on the U.S. economy and the efficacy of his policies,” Schiff wrote on X.
“If I’m as wrong as he says I am, let him prove it.”
