Bitcoin or Gold? Schiff Says Central Banks Have Made Their Choice

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The age-old debate between Bitcoin and gold is heating up again and economist Peter Schiff wants to weigh in.

In a recent X post, Schiff, a staunch Bitcoin critic, spotlighted the growing trend of central banks worldwide stocking gold reserves, strengthening their timeless value amid global economic uncertainty.

With geopolitical uncertainties, crypto scams, and shifting economic policies moving demand, Schiff claims gold’s stability, Trump’s pro-crypto policies, and Bitcoin’s volatility, sparking fresh discussion among investors.

Why Central Banks Are Choosing Gold Over Bitcoin

In Schiff’s latest commentary, he took a direct jab at Bitcoin advocates by asking: If Bitcoin is the future, why are central banks betting on gold to replace the dollar?

That question cuts to the heart of an ongoing shift in the global financial system. With fears of U.S. dollar devaluation and escalating geopolitical risks, foreign central banks are turning to gold – not crypto – as their hedge. According to a Reuters report, central banks are now buying more than 1,000 metric tons of gold annually – double the average of the previous decade.

And the momentum isn’t slowing down.

Michael Widmer, a strategist at Bank of America, says emerging market central banks currently hold just 10% of their reserves in gold but should be targeting 30% for greater financial protection.

Trump, Tariffs, and the Rise of Gold Demand

Peter Schiff also ties this growing demand for gold to the current U.S. administration. With President Donald Trump back in office and pushing aggressive tariff policies, countries are looking to shield their economies from potential fallout.

As the dollar weakens, the appeal of gold rises. And in times of uncertainty – from trade wars to banking collapses – central banks want assets that stand the test of time.

Russia Leads the Gold Playbook

Russia has been ahead of the curve. Between 2014 and 2020, the Russian central bank hoarded gold to buffer itself from Western sanctions. Today, its Ministry of Finance is reportedly continuing that accumulation – buying from domestic producers and quietly strengthening reserves.

This playbook is being adopted by other emerging economies as well, reinforcing Schiff’s argument that gold’s legacy value is far from obsolete.

So, if Bitcoin truly is the future, why aren’t central banks buying it?

Bitcoin’s Volatility vs. Gold’s Stability

Schiff didn’t stop at praising gold. He also took a swing at Bitcoin’s unpredictability. He warned that American investors – who collectively hold nearly half of all Bitcoin – may be in for a rude awakening as the price swings continue and global institutions remain cautious.

At the time of writing, gold trades at $3,357.4 per ounce, up 1.82% for the day but slightly down over the month. Meanwhile, Bitcoin is priced at $108,148 – down 2.31% in the last 24 hours, though it’s seen a 17% jump over the month.

Despite the short-term surge, Schiff argues that Bitcoin lacks the long-term security central banks crave.

Ran Neuner Weighs In: Could Bitcoin Still Outshine Gold?

Not everyone agrees with Schiff’s stance. CNBC’s Ran Neuner recently suggested that Bitcoin could outperform gold in the long run as a safe-haven asset – especially amid advancements in blockchain tech and increasing institutional adoption.

But Schiff remains skeptical. He also criticized the growing use of stablecoins in the U.S., pointing to the regulatory fog.

Will Schiff’s predictions hold as the crypto space evolves? Only time will tell.

Crypto Pulpit