Bitcoins outshine gold, claims Binance CEO CZ, arguing that gold is not truly a scarce resource compared to Bitcoin.
Firing Up the Crypto Vs Gold Debate
Fire away, folks! Binance's CEO, CZ, stirred the pot with a sharp tweet declaring that while he ain't no gold hater, Bitcoin's scarcity trumps gold any day.
Gold's been on a rollercoaster ride, falling 2.6% weekly after peaking at $3,500.50 in April. Guess who's adding a little more volatility to the mix? That's right, Bitcoin! The crypto titan surged by 20% from its April 8 dip, but it's still got a ways to go to outshine gold's yearly numbers.
The reasons? Rising U.S. Treasury yields and easing U.S.-China trade tensions dampened gold's appeal as a safe haven, according to experts. Daniel Pavilonis of RJO Futures even went as far as suggesting that gold might've reached its peak at $3,500.
But what about CZ's argument? He put Bitcoin's fixed supply of 21 million digital coins – can't be printed, can't be inflated – head-to-head with gold's ever-expanding supply. As inflation concerns swirl and central bank policies get sketchy, that's a key difference, he believes.
Gold's guard dog, Peter Schiff, wasn't about to back down. Known for his Bitcoin bashing, Schiff shot back, "Bitcoin’s still acting like tech stocks. Gold is what you buy to protect from inflation." The falling bond prices and a weakening dollar are Schiff's concerns – he reckons they'll impact the market big time.
So, what's the story with the Bitcoin-gold correlation these days? After synching up from 2020-2024, they parted ways in March 2025. The 25-week correlation dropped to -0.42, its lowest level since 2020. Things improved slightly in April, but the assets are no longer dancing in lockstep like they used to.
Geoff Kendrick, Standard Chartered's global head of digital assets, set the record straight: "Bitcoin is not gold. In fact, it behaves more like big tech stocks. It offers protection against traditional financial risks and should be viewed as a tech investment."
So, where does this leave us? Bitcoin's and gold's paths might be diverging, but market conditions could toss them back together like an unpredictable fiscal dance floor. However, according to CZ, Bitcoin's digital scarcity is one-of-a-kind, making it a prime contender for the throne of store-of-value kings.
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Enrichment Data:
- CZ's stance on Bitcoin's superiority over gold is rooted in its programmed scarcity and decentralized nature, positioning it as a prime non-sovereign store of value in a world distrustful of fiat currencies and wary of geopolitical risks[1].
- Peter Schiff's critique of Bitcoin typically focuses on its volatility, regulatory uncertainties, and lack of physical backing, contrasting with gold's physical scarcity, historical stability, and intrinsic value[1].
In the ongoing debate between Bitcoin and gold, CZ, the CEO of Binance, asserts that Bitcoin's programmed scarcity and decentralized nature make it a superior store-of-value, particularly in a world where there is a growing distrust of fiat currencies and concerns about geopolitical risks. Conversely, Peter Schiff, known for his critiques of Bitcoin, argues that Bitcoin's volatility, regulatory uncertainties, and lack of physical backing fail to compare with gold's historical stability and intrinsic value. Thus, the debate between these two assets in the realm of finance, technology, and business continues to intensify.
