Peter Schiff Declares Bitcoin a “Ponzi Built on a Pyramid”

• Schiff says that today’s Bitcoin demand isn’t from everyday users or broader adoption, but rather speculative buying by bitcoin treasury companies and front-running investors
• He remarks that Bitcoin’s surge is not due to genuine utility or mass adoption
• In Q2 2025, public companies added 159,000 BTC, which brings total holdings to approximately 847,000 BTC (roughly 4% of total supply)

Peter Schiff, a stockbroker and a well-known Bitcoin critic, argues that today’s Bitcoin demand isn’t from everyday users or broader adoption, but rather speculative buying by Bitcoin treasury companies and front-running investors. He labels this as a Ponzi scheme or “Ponzi built on a pyramid”, to quote his direct words.

Schiff warns that the model may collapse if new inflows stop, since without mainstream use or real economic backing, he sees the setup as fragile and speculative.

In Q2 of 2025, public companies added 159,000 BTC, which brings total holdings to approximately 847,000 BTC (roughly 4% of the total supply). More and more firms joined the trend (over 46, to be more precise), including GameStop, Figma, Sequans, and even Trump Media. 

Today, Bitcoin reached an all-time high yet again by going over the $122k mark. The rise is happening as everyone awaits the conclusion of the ‘Crypto Week’ and the advancement of key US bills like the CLARITY, GENIUS, and Anti‑CBDC acts.

While there is no official confirmation, the drive in US legislation might serve to legitimize Bitcoin held in corporate treasuries, even though critics like Schiff say that this just masks an underlying speculative bubble.

Schiff seems to think that Bitcoin’s surge is chiefly driven by crypto treasury plays (such as those from MicroStrategy, Metaplanet, Trump Media, and the rest) and speculators chasing that narrative. He says that the surge is not due to genuine utility or mass adoption.

A clash of different views

Naturally, Bitcoin supporters view the cryptocurrency’s accumulation by corporate treasuries as a big institutional acceptance on a macro scale, which could propel Bitcoin’s value to between $140,000 and $180,000.

However, Schiff and others of a similar view see it as pure speculation where a small number of players are driving prices for short-term gain, not long-term value.

His sentiment is no surprise as Schiff has been one of the most consistent Bitcoin skeptics since its early days. He became well-known after predicting the 2008 financial crisis and has used that reputation to build a following as a prominent gold advocate and crypto critic.

Even if a lot of crypto enthusiasts don’t agree with him, he does represent the traditional hard money perspective, so his perspective usually has merit in the financial sector.