Peter Schiff Slams Bitcoin as ‘Backed by Nothing’ in Heated Tokenized Gold Debate With CZ

TLDR

• Peter Schiff and CZ debated tokenized gold versus Bitcoin at Binance Blockchain Week in Dubai on December 4, 2025
• Schiff could not verify if a gold bar CZ handed him was real during their onstage debate
• Both agreed tokenized gold improves on physical gold’s portability and divisibility issues
• CZ argued Bitcoin’s supply is fixed and verifiable while gold’s total supply remains unknown
• Schiff claimed Bitcoin is “backed by nothing” while CZ said Bitcoin’s virtual nature doesn’t diminish its value

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Peter Schiff and Changpeng “CZ” Zhao faced off at Binance Blockchain Week in Dubai on Thursday, December 4, 2025. The debate centered on whether tokenized gold or Bitcoin serves as a better store of value.

The discussion took an unexpected turn when CZ handed Schiff a gold bar. The bar displayed markings indicating it was from Kyrgyzstan, weighed 1,000 grams, and was 999.9 fine gold with a serial number. CZ asked Schiff if the bar was real gold.

Schiff responded that he did not know. The audience of crypto supporters laughed and applauded at his inability to verify the gold bar’s authenticity. CZ used this moment to highlight Bitcoin’s advantage in verifiability through cryptographic methods.

The two debaters found common ground on one point. Both agreed that tokenized gold offers improvements over physical gold bars. Schiff explained his TGold platform, which sells vaulted metal and will allow users to withdraw physical bars or tokens representing ownership.

CZ agreed that tokenized gold provides benefits. He stated that tokenized gold is divisible, transferable, and transportable. These features make it easier to use than physical gold bars.

Key Arguments About Bitcoin Versus Gold

CZ countered that Bitcoin’s virtual nature does not reduce its worth. He compared Bitcoin to digital platforms like X and Google, which are purely virtual but clearly valuable. CZ described Bitcoin as “a new technology for money” supported by a worldwide network.

The supply debate revealed another major difference. Schiff emphasized that gold mined thousands of years ago still exists today. He argued this demonstrates gold’s lasting value and durability as an asset.

CZ argued that gold’s total supply remains unknown. New deposits could be discovered at any time. Bitcoin’s supply is fixed at 21 million coins, and the blockchain shows exactly where every bitcoin exists.

Practical Use Cases Disputed

Schiff challenged Bitcoin’s utility as actual money. He claimed nothing is priced in Bitcoin and merchants receive fiat currency instead. According to Schiff, users sell their Bitcoin and then pay with regular currency.

CZ held up a Binance card as evidence of real Bitcoin spending. He said users simply swipe their card and crypto gets deducted from their account. CZ also shared a story about an African user who reduced bill payment time from three days to three minutes using crypto.

Schiff described Bitcoin as a speculative bubble. He pointed out that Bitcoin buys 40% fewer ounces of gold today than it did four years ago. This occurred despite Bitcoin ETFs, corporate treasury purchases, and constant market attention.

CZ dismissed this comparison. He asked how many people made money on Bitcoin since it rose from fractions of a cent to tens of thousands of dollars. He argued that Schiff’s view ignores Bitcoin’s long-term performance and practical applications.

The verification challenge highlighted real issues with gold authentication. The London Bullion Market Association states that X-Ray Fluorescent Spectroscopy only works on metals up to 10 microns thick. Ultrasound and Eddy Current testing have similar limitations and are not definitive testing methods.

Fire assaying is the only method that provides 100% certainty about gold content. This process involves melting down the gold to verify its makeup. The LBMA calls this a “destructive” testing method because it destroys the original bar.

CZ predicted Bitcoin will outperform gold going forward. Schiff countered that rising demand for precious metals will eventually overwhelm cryptocurrency.

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