Bitcoin vs Gold: Peter Schiff Explains Why Central Banks Choose Yellow Metal over BTC

Nynu V Jamal
May 24, 2025
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Bitcoin Critic Peter Schiff Explains Why Central Banks Will Choose Gold over BTC

Highlights

  • Peter Schiff reiterates his preference of gold over Bitcoin.
  • The BTC critic highlights the growing trend of banks adopting gold.
  • Russia's Ukrainian invasion is one of the key drivers of gold adoption.

Bitcoin critic Peter Schiff has reignited the never-ending Bitcoin vs Gold debate with his recent post on X, outlining his divergent views on the two assets. His argument centered on the growing trend of global central banks favoring gold reserves over Bitcoin.

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Gold Wins, Bitcoin Loses: Peter Schiff Explains Central Banks’ Choice

In his recent X post, Peter Schiff doubled down on gold as the ultimate safe-haven asset. Via his thread, Schiff, a vocal Bitcoin critic, once again emphasized gold’s superiority over BTC. Referring to the foreign central banks’ increasing adoption of the traditional asset as a reserve, he stated,

If gold is the past and Bitcoin is the future, why are foreign central banks that are preparing for a future where the U.S. dollar is no longer the reserve currency, replacing their dollar reserves with gold and not Bitcoin?

According to Peter Schiff, the growing trend of the precious metal becoming a reserve underscores its timeless value in the global financial system. In another post, Schiff criticized Americans for collecting Bitcoin at high prices. He asserts that Americans, who own nearly half of global Bitcoin and hold 40% of the supply, may be set up for significant losses as others cash out.

In a recent development, CERN scientists experimented with a lead-to-gold transformation. This sparked debate about the metal’s long-term value, with CNBC’s Ran Neuner predicting Bitcoin will outperform gold as a safe-haven asset.

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Central Banks Accumulate Gold

Driven by US President Donald Trump’s tariff policies and the Dollar’s devaluation, global central banks are diversifying their reserves with gold. Russia’s 2022 invasion of Ukraine is another major factor contributing to the growing demand for the asset. According to a Reuters report, “This year’s demand from central banks [for gold] may be the highest in many decades.”

Bitcoin Critic Peter Schiff Explains Why Central Banks Will Choose Gold over BTC
Source: Bloomberg

Following Russia’s Ukrainian invasion, central banks accelerated their gold purchases, buying over 1,000 metric tons annually – double the previous decade’s average. BofA commodity strategist Michael Widmer stated, “Emerging market central banks currently hold around 10% of their assets in gold. They should really hold 30% of their assets in gold.”

Notably, Russia’s central bank is a top gold holder globally. The country has stockpiled the metal from 2014 to 2020 to shield against Western sanctions. Meanwhile, the Ministry of Finance is believed to be quietly accumulating this asset from domestic producers. Reflecting this trend, foreign governments are accumulating the precious metal.

Pointing to this increased demand for the traditional asset, Peter Schiff questions why central banks wouldn’t opt for Bitcoin if it’s truly the superior reserve asset. In addition, Peter Schiff criticized the increasing use of stablecoins in the US amid regulatory uncertainty.

At press time, gold is valued at $3,357.4 per ounce, up 1.82% in a day and down 1.12% in a month. Meanwhile, Bitcoin is $108,148, down 2.31% in a day and up 17% in a month.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Nynu V Jamal is a Senior Journalist at CoinGape. She boasts more than 3 years of experience in content writing, with expertise in crypto and blockchain. She has contributed to platforms like CoinEdition and CryptoTale, demonstrating her proficiency in navigating the dynamic crypto landscape. Beyond her journalistic pursuits, Nynu is a literary enthusiast, having served as an Assistant Professor of English Language and Literature. She is a Master's degree holder in English Literature and a UGC NET qualifier. Her academic background has enabled her to publish research papers on literature, while also nurturing her creative side as a published poet. Her creative side extends to music, crafts, and art, which she actively explores. Her unique blend of analytical and creative skills allows her to craft engaging stories that captivate audiences. Stay updated with Nynu on LinkedIn
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.