Wharton professor issues gruesome warning on Bitcoin

Jeremy Siegel, a Wharton Business School professor and the chief economist at the investment management firm WisdomTree, stated to CNBC that Bitcoin may turn out to be a serious competitor to the U.S. dollar as the world's reserve currency.

Speaking on the GENIUS Act, Siegel said, Bitcoin is 'a threat'. The GENIUS Act, enacted July 18 with bipartisan backing, demands a complete stablecoin regulatory framework.

"What is interesting is that Bitcoin itself is a threat to the dollar as a reserve currency."

Bitcoin could rival the euro

The professor also stated that while there is an ongoing push by the U.S. legislative branch to regulate digital assets, he believes parts of the pending crypto bill are "important catalysts" for the industry. He also said the components that were added in lately – as in "the 10th hour part of this bill" – could help thaw a legacy system.

Siegel stated that there has been speculation about the BRICS countries creating a rival system, but no one has threatened the dollar.

"I didn't think the BRICS were really any threat at all, but the opponent actually has a chance.”

He related this dynamic to larger shifts happening in global finance, stating that it had been in a "frozen state for years," but that international transfers across borders and time zones were "too slow and too expensive. He believes that crypto-based systems could help that process become efficient.

Jeremy Siegel, Russell E. Palmer Professor of Finance at the Wharton School.Getty Images Interestingly, on Sept. 8, Vladimir Putin’s Special Advisor Anton Kobyakov said that the US has been trying to tackle its soaring debt situation and "rewrite the rules” with crypto. Now, Russia is reportedly trying to launch its own central bank digital currency.

Bitcoin’s growing role in the economy

Outside of payments, Bitcoin's appeal has long been that it has served as "digital gold" — a scarce asset that many investors have turned to as a hedge against inflation.

Related: What are tokenized stocks? Explained

A stable 21 million coin supply, unchanged over the past decade, has drawn institutions and investors suspicious of monetary expansion to Bitcoin. Investors often cite the cryptocurrency's surge during times of aggressive central bank easing — such as the pandemic-stimulus era of 2020 — in arguing it is a good hedge against inflation.

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For instance, Michael Sonnenshein of Grayscale has spoken about Bitcoin's growing role. He said, "The amount of fiscal stimulus that has been injected into the system … has really caused investors to think about what constitutes a store of value, what constitutes an inflation hedge and how they should protect their portfolios."

Story Continues #### FAQs

Q: Why do some investors call Bitcoin a “store of value”?

A: Governments and central banks cannot inflate Bitcoin since it has a fixed quantity of 21 million coins. This is why supporters say its scarcity makes it like gold, preserving value over time, especially during severe inflation or monetary expansion.

Q: How could Bitcoin challenge the U.S. dollar’s reserve currency status?

A: The U.S. dollar is the world's reserve currency because most of the world's trade and finance are done in it. Bitcoin is an alternate system that doesn't depend on the economy of one country because it is decentralized and has no borders. If more institutions, governments, or global trade partners start using it, it might make the dollar less important.

Q: What are the main arguments against Bitcoin replacing the dollar?

A: Critics say that Bitcoin is volatile, has a short history, and is subject to regulatory issues. A real reserve currency must be stable and supported by a lot of people. Critics contend that while it might be used as a parallel asset or hedge, the dollar won't be completely replaced anytime soon.

This story was originally reported by TheStreet on Sep 9, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.

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