Gold Bull Peter Schiff Discusses the Surge of $TRUMP: Why Doesn’t the Trump Organization Adopt MicroStrategy’s Flywheel Strategy?
As Trump’s own meme coin $TRUMP reached a peak market capitalization of $14.54 billion in just two days, it showcased the astonishing potential of meme coins. Gold bull Peter Schiff also mocked this by suggesting why not include the token in personal retirement account reserves or emulate MicroStrategy’s strategy to leverage the Trump Group.
(Gold advocate Peter Schiff: Bitcoin is Public Enemy No. 1 in the U.S., as the government encourages people to waste money)
Schiff: $TRUMP is worthy of being called digital gold
In just a few days, the meme coin $TRUMP has caused a sensation in the market, quickly becoming the focus of the cryptocurrency world, with its price skyrocketing by 40,000% since last Friday.
In response, Peter Schiff, chairman of precious metals dealer SchiffGold, joked: “It took Bitcoin 8 years to achieve its market cap, while $TRUMP reached this feat in just two days.”
The market capitalization of $TRUMP already exceeds that of Newmont (NEM), the world’s largest gold producer, by 50%. Clearly, it has a greater function as a store of value than Bitcoin, establishing itself as the new “digital gold.”
(What could Trump’s meme coin $TRUMP revolution bring as the next cryptocurrency president?)
$TRUMP as a Strategic Reserve?
Simultaneously, Schiff jested that to further elevate the global status of $TRUMP, it could be considered for inclusion in national-level strategic reserves:
“We should establish strategic reserves and mandate that all Individual Retirement Accounts (IRAs) allocate 10% of their holdings to $TRUMP, while imposing a 100% tariff on nations that do not allocate 10% of their foreign exchange reserves to $TRUMP.”
(Can digital gold rise, and can Bitcoin replace gold as a national reserve or a de-dollarization tool?)
Why not emulate MicroStrategy’s “21/21 Plan”?
Schiff further joked that Trump’s Trump Media and Technology Group (TMTG) might consider adopting MicroStrategy’s Bitcoin flywheel strategy by incorporating $TRUMP into the company’s balance sheet:
In this way, TMTG could issue convertible bonds and sell stock using its own cash, using the funds raised to buy more $TRUMP, thereby driving up the price.
He added, “This virtuous cycle could even allow Trump’s net worth to surpass that of Musk.”
However, in reality, this “price growth driving capital inflow” model is a high-risk financial leverage operation that can quickly collapse due to shaken market confidence. While it may be feasible for Bitcoin, employing this strategy with a meme coin could jeopardize the company’s financial stability and lead to legal risks.
(Understanding MicroStrategy from scratch: the transformation from Business Intelligence (BI) to a Bitcoin empire)
Even though $TRUMP’s rapid rise has made it a primary speculative tool in the crypto market, its future stability and long-term value will depend on its ability to successfully integrate into more practical application scenarios and gain broader support. As its global influence grows, whether $TRUMP can continue to survive still remains to be seen over time.
Risk Disclaimer
Investing in cryptocurrencies involves high risks, and their prices may fluctuate dramatically. You may lose your entire principal. Please assess the risks carefully.
