Gold vs. Bitcoin: Peter Schiff Challenges CZ to a Showdown Over the Future of Money

Peter Schiff, the outspoken economist and CEO of Euro Pacific Asset Management, has issued a direct challenge to Changpeng Zhao (CZ), co-founder of Binance, for a live debate on whether gold or Bitcoin represents the future of money. The proposed face-off, announced via Schiff’s X post, pits the gold advocate’s faith in physical scarcity against CZ’s belief in Bitcoin’s digital supremacy, reigniting a perennial clash amid surging interest in both assets.

The Debate’s Roots: Tokenized Gold vs. Bitcoin’s Promise

Schiff, a long-time Bitcoin critic, argues that tokenized gold is the ideal blockchain asset, combining gold’s 5,000-year history as a stable store of value with the efficiency of digital tokens. He plans to launch a platform through Schiff Gold, allowing users to buy, store, and redeem physical gold via blockchain-based tokens. “Ideally, the one thing that makes sense to put on a blockchain is gold,” Schiff stated in a recent interview. He emphasizes gold’s proven role as a medium of exchange, unit of account, and store of value, noting its 100% price growth in 2025 so far, outpacing Bitcoin’s consolidation phase.

CZ, fresh off a presidential pardon from Donald Trump for anti-money laundering violations, welcomed the challenge on X, replying, “I’m in the mood for it” and praising Schiff’s professionalism. However, he sharply rejected tokenized gold, calling it “NOT ‘on-chain’ gold” but rather a “trust me bro” token reliant on third-party custodians. “Tokenizing gold is NOT ‘on-chain’ gold. It’s tokenizing that you trust some third party will give you gold at some later date—maybe decades later, during a war, after management changes, etc.,” CZ wrote. He argued that such systems explain why gold coins haven’t gained traction, reaffirming Bitcoin’s decentralized edge.

Market Context: Gold’s Rally and Bitcoin’s Resilience

The debate unfolds against gold’s record high above $4,035 per ounce, fueled by U.S. fiscal concerns and inflation fears, with its $30 trillion market cap dwarfing Bitcoin’s $2 trillion. Tokenized gold, including Tether Gold (XAUT) and PAX Gold (PAXG), has seen its combined market cap cross $3.75 billion, up from $3 billion recently, with $640 million in daily trading volume. These tokens represent over $3.5 billion in RWAs, a 36% monthly increase, with 150,000 holders and $8.6 billion in transfers.

Bitcoin, meanwhile, has risen 150% since early 2024 to over $126,000, its all-time high, though its correlation with gold has weakened to 0.19 from near-perfect alignment. This independence highlights their divergent paths: gold’s stability versus Bitcoin’s growth potential.

Broader Debate: Digital vs. Physical Money

Schiff champions gold’s intrinsic value and historical reliability, while CZ sees Bitcoin as the “internet of money” for seamless, borderless payments. Data shows Bitcoin’s millions of percent gains since 2009 far outpace gold, but Schiff counters that volatility undermines its monetary role. Lightspark CEO David Marcus predicts Bitcoin could reach $1.3 million if it matches gold’s cap, calling it superior for cross-border use. Bitwise CIO Matt Hougan notes gold’s 2025 gains stem from central bank buying since 2022, potentially foreshadowing Bitcoin’s institutional surge.

The challenge, if accepted, could draw millions of viewers, amplifying the gold-Bitcoin rivalry in an era of $150 billion+ DeFi TVL. It underscores a philosophical divide: physical scarcity versus digital sovereignty, with tokenized gold bridging the two.

In the end, whether gold or Bitcoin prevails may depend on innovation’s pace, but the debate ensures both remain central to finance’s future.