Peter Schiff just dropped a bombshell: Gold about to leave crypto in the dust
-
Economist and gold advocate Peter Schiff has once again sparked intense debate in the investment world, claiming that gold is on the verge of outperforming cryptocurrencies in a significant way. In a series of recent interviews, public statements, and market commentaries, Schiff has warned investors that the excitement around Bitcoin and other digital assets is misguided. He believes gold is set to regain its crown as the ultimate safe-haven asset, while crypto will struggle under mounting economic pressures.
As the global financial system grapples with inflation, currency debasement, and growing geopolitical tensions, Schiff insists that gold's historical reliability will ultimately leave crypto behind in terms of both performance and trust.
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How is gold performing compared to Bitcoin and crypto ETFs?
The numbers so far in 2025 are clear: gold is beating Bitcoin in both price growth and stability.
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Year-to-date performance (2025):
Gold price
has surged over
+25%
, hitting an all-time high of
$3,500 per ounce
in April. As of July 2025, it's trading around
$3,330–$3,400
.
Bitcoin ETFs
, such as BlackRock's IBIT, have returned roughly
+14.5%
year-to-date.
Gold ETFs
, like SPDR Gold Shares (GLD), have delivered returns closer to
+24.4%
.
Why are central banks buying so much gold in 2025?
One of the strongest indicators behind Schiff's confidence is central bank behavior — and the numbers don't lie.
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In 2025, central banks are on track to purchase over 1,000 metric tons of gold, according to data from Metals Focus and the World Gold Council.
That's more than double the average annual purchases made between 2010 and 2020.
Even after 2024's record 1,086 metric tons, central banks are still hungry for gold — showing only a slight 8% drop in buying volume this year.
Nearly 95% of reserve managers surveyed by the World Gold Council in 2025 expect gold's share in global reserves to increase, not decrease.
Roughly
43% of central banks
plan to increase their own gold holdings in the next 12 months.
In contrast, Bitcoin continues to be almost entirely absent from global reserve portfolios. No major central bank has yet adopted Bitcoin as a formal reserve asset.
Why Schiff says Bitcoin isn't a reliable hedge in 2025
Peter Schiff has long argued that Bitcoin is
too volatile to be a store of value,
and the current data backs him up.
Bitcoin's price volatility remains
three times higher than gold's
, based on 30-day average swings.
In fact, Bitcoin is nearly
7x more volatile than gold
on an annualized basis.
During economic or geopolitical shocks (like the April 2025 oil shock), gold prices soared, while Bitcoin
initially dropped by 6% before bouncing back
— a sign that investors still flee to gold first.
Schiff calls this a major flaw in the 'Bitcoin as digital gold' narrative. Gold acts like a safe haven. Bitcoin behaves more like a
tech stock or meme coin
, Schiff said during his controversial appearance at the Bitcoin 2025 conference in Miami.
Bitcoin's Image as 'Digital Gold' Under Fire
For years, Bitcoin has been branded as 'digital gold'—a decentralized store of value immune to inflation and geopolitical risks. But Schiff sharply rejects this notion, stating that Bitcoin lacks intrinsic value and is driven more by speculative hype than fundamental worth.
He has described Bitcoin as a 'decentralized Ponzi scheme' and a 'memecoin for the masses,' pointing out that it has no utility beyond what people believe it has. During moments of global unrest—such as military conflicts or political crises—gold tends to rise in value, while crypto assets often dip. This, Schiff argues, proves that Bitcoin does not behave like gold when it truly matters.
Gold vs Crypto: 2025 Performance Snapshot
In comparing asset performance this year, Schiff points to gold's strong rally, especially through gold-mining stocks and ETFs. Many gold-related investments have significantly outperformed even the top-performing cryptocurrencies in 2025. Gold miner stocks in particular have seen impressive double-digit gains, while Bitcoin and Ethereum have had more volatile and inconsistent performances.
Schiff believes this trend will only accelerate. He argues that crypto's current gains are built on shaky ground—largely fueled by sentiment, meme culture, and speculative momentum—while gold's rally is rooted in real-world demand, institutional investment, and macroeconomic fundamentals.
Short-Term Moves: Schiff's Take on Ethereum and Bitcoin
In a surprising shift from his traditionally anti-crypto stance, Schiff recently suggested that investors might consider switching from Ethereum to Bitcoin in the short term. He explained this by noting that technical indicators show Bitcoin currently has stronger market momentum compared to Ethereum.
However, he quickly followed up this statement by warning investors to exit Bitcoin altogether and move into gold or gold-mining stocks. His reasoning? While Bitcoin may have short-term upside versus other altcoins, it still lacks the long-term stability and value foundation that gold has maintained for centuries.
What does Schiff predict for gold in late 2025 and 2026?
Peter Schiff isn't just making short-term calls. He believes gold is entering a new long-term supercycle — and analysts are starting to agree.
Schiff predicts
gold could top $4,000/oz by mid-2026
, as inflation concerns persist and global trust in fiat currencies erodes.
JPMorgan and UBS have echoed similar views, setting
$3,675–$4,000
price targets for Q4 2025.
If the U.S. dollar weakens further and interest rate cuts continue,
gold's upside remains strong
.
Gold-Backed Tokens: Schiff's Digital Pivot
Despite being a vocal critic of cryptocurrencies, Schiff isn't completely against digital finance. He's expressed growing interest in gold-backed tokens—digital assets that represent ownership in real, physical gold. Schiff believes these kinds of assets combine the technological advantages of blockchain with the tangible value of gold, offering a far more reliable alternative to fiat-backed stablecoins or speculative cryptocurrencies.
He's even hinted at launching his own gold-backed token project, which would allow investors to own fractional gold assets securely via blockchain. This approach reflects a growing demand for trustworthy digital alternatives that are actually tied to real-world value, unlike the often-unbacked tokens circulating in the crypto market.
Is Bitcoin losing its edge as digital gold?
Despite crossing $105,000 in June, Bitcoin's 2025 performance still trails gold in several critical ways:
Schiff points out that Bitcoin is still 15% below its all-time high when priced in gold terms — suggesting that even in 'bullish' crypto conditions, gold is winning the long game.
Bitcoin adoption remains retail-driven, while gold is gaining traction with sovereign institutions.
To Schiff, this is proof that
Bitcoin is not replacing gold
— it's competing in a different, more speculative category.
Why Schiff Believes Gold Will Win
Peter Schiff's main points can be broken down into five key reasons why he believes gold is about to dominate:
1.
Centuries of Proven Value
Gold has a multi-thousand-year track record as a store of value, while Bitcoin is still relatively new and untested over full economic cycles.
2.
Institutional Preference
While retail traders may favor crypto for short-term gains, governments and central banks are steadily accumulating gold—not Bitcoin—suggesting where long-term confidence lies.
3.
Performance in Crises
During recent geopolitical and economic shocks, gold has consistently performed well, while Bitcoin has often dropped in value—challenging its 'safe-haven' status.
4.
Asset Backing and Intrinsic Worth
Gold is a physical commodity with tangible uses in industry, jewelry, and currency backing. In contrast, crypto is purely digital, with no intrinsic utility beyond its perceived scarcity.
5.
Sustainable Market Dynamics
The rise in gold prices is fueled by real-world demand and supply constraints. Crypto, on the other hand, often moves based on market sentiment, influencer promotion, or sudden policy announcements.
Are investors starting to agree with Schiff?
While the crypto community continues to push Bitcoin adoption, mainstream investors and institutions are quietly favoring gold:
Gold-backed ETFs have seen net inflows of over $45 billion globally in 2025, the largest since 2020.
Meanwhile, Bitcoin ETF inflows have slowed, with many investors citing regulatory risks, energy concerns, and high volatility.
Even major hedge funds like Bridgewater, BlackRock, and Ray Dalio's camp have increased gold exposure this year — while keeping crypto allocations flat or trimmed.
A Balanced Investment Perspective
While Schiff's outlook strongly favors gold, many financial analysts recommend a balanced investment strategy. Crypto continues to offer high potential returns, particularly for risk-tolerant investors looking for short- to medium-term gains. Meanwhile, gold remains a reliable long-term hedge against inflation and currency debasement.
Investors may consider holding a diversified portfolio that includes both assets—allocating more weight to gold for stability, and a smaller portion to crypto for speculative growth potential. Schiff's warnings are particularly important for those who are overexposed to digital assets without a fallback.
Gold-Backed Digital Assets: The Best of Both Worlds?
As the finance industry evolves, more investors are exploring hybrid solutions—especially gold-backed cryptocurrencies or tokenized assets. These allow users to enjoy the transparency and speed of blockchain while maintaining the value security of gold.
This trend aligns with Schiff's prediction that digital finance will not disappear—but it must be rooted in real, tangible value to be sustainable. The future, he argues, isn't crypto or gold. It may be a blend of both—with gold still setting the standard.
Is gold really outperforming crypto in 2025?
According to both the data and sentiment in 2025, yes — gold is having a stronger year than Bitcoin.
Metric
Gold
Bitcoin / Crypto ETFs
Central bank demand
1,000+ metric tons/year
0 official reserve adoption
YTD 2025 price return
+25%
+14.5%
Volatility
Low (~1/3 of BTC volatility)
Very high (tech-stock behavior)
ETF inflows
$45+ billion
Slowing, uneven
2025 price target
$3,675–$4,000 per ounce
Uncertain, wide estimates
Peter Schiff's recent statement that 'gold will leave crypto in the dust' may sound provocative, but it reflects growing concerns about the long-term viability of digital assets. With central banks accumulating gold, gold prices outperforming many crypto assets, and macroeconomic instability on the rise, Schiff's call to return to fundamentals is gaining traction.
Whether or not you agree with his stance, his message is clear: in times of uncertainty, gold shines—and Schiff believes its luster will soon outshine crypto's digital dazzle.
FAQs:
Q1. Why does Peter Schiff believe gold will outperform crypto in 2025?
Because gold is more stable, widely trusted, and backed by central banks, unlike volatile cryptocurrencies.
Q2. What makes gold a better safe-haven asset than Bitcoin, according to Schiff?
Gold performs better during crises and has real, long-term value—not just market hype.
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