Binance CZ Engages in a Heated Debate with Peter Schiff: Bitcoin vs Gold—Who Wins?

Binance founder CZ and renowned economist and gold bull Peter Schiff faced off in a heated debate over “Bitcoin vs Gold.” In front of a crypto-savvy audience, CZ admitted he had the home-court advantage and praised Schiff’s courage for debating on stage. Schiff took the opportunity to add a jab, saying he’s tried for years to debate Michael Saylor but was always refused. The two discussed topics from “tokenized gold” to the nature of money and speculation, generating plenty of sparks.

Tokenized Gold Launches: The Digital Version Is Closer to Real Money

The debate began with CZ asking Schiff to explain his tokenized gold project. Schiff stated that through t-gold.com, he offers physical gold and silver trading and custody, using a (Allocated) model with segregated, independent storage. Customers truly own the physical gold, which is simply held in a vault on their behalf.

In the future, customers can choose to sell and convert to USD, withdraw gold bars, or exchange their gold for on-chain tokens, depositing them in their own wallets or trading on exchanges. Schiff likened the tokens to “locker claim checks”—the gold stays in the vault, while ownership moves on-chain. He believes this approach solves the inconvenience of gold’s divisibility, portability, and payments, making it a truly liquid “digital gold currency.”

Paper Money History Revisited: Tokenized Gold Like Digital Gold Standard

Schiff went on to put “tokenized gold” in the context of monetary evolution. He recalled that, in early days, people deposited gold with blacksmiths and received IOU notes; as these could be redeemed for gold, they gradually circulated like gold-backed paper money. Later, governments took over issuing banknotes, and during the gold standard era, paper currency could be directly exchanged for real gold, which is why people trusted its value.

After countries abandoned the gold standard, paper money was no longer redeemable for gold, becoming fiat currency backed solely by confidence. Schiff believes Bitcoin is more like this kind of “belief-based, not gold-backed” money. In contrast, tokenized gold puts the “redeemable paper money” of old onto the blockchain, just swapping paper for tokens. He emphasized that such tokens need not be issued by governments; any trustworthy private institution could issue a “digital gold standard” token.

(Note: IOU is a simple debt acknowledgment, used to recognize liabilities. It typically just states the amount owed and the signatory, unlike a promissory note, which has a clear repayment schedule or formal legal format. It can be used for money, goods, or services and is the most basic private lending certificate.)

Virtual Doesn’t Mean Worthless, But Must Have Use

When it was CZ’s turn, he discussed the value of the digital world. He pointed out that X and Google are digital services—intangible, yet highly valued by the market. Bitcoin is similar: essentially, it’s an ever-growing ledger of “transaction records” on the blockchain; it has no physical form, but that doesn’t diminish its value.

Schiff did not deny that intangible assets can have value, but stressed the real core is “use case.” Gold’s physical properties are needed in industry, jewelry, electronics manufacturing, and central bank reserves; it doesn’t corrode and can last millennia. Bitcoin, on the other hand, has no “must-use” scenario. Its main demand comes from speculators hoping someone will pay more in the future. Therefore, he believes that while Bitcoin has a market price, it lacks intrinsic value.

Fixed Bitcoin Supply vs Gradual Gold Mining: Scarcity in Focus

On supply, CZ said the gold supply is uncertain—large new finds or technological breakthroughs could change it. Bitcoin, however, is capped at 21 million coins, and even its satoshi subdivisions are limited.

Schiff responded that, despite centuries of attempts, humans have never been able to mass-produce gold cheaply. Gold’s annual supply growth has long averaged about 1%, very stable. While Bitcoin has a cap by design, it’s too new to know if it can preserve value across generations.

(Note: Satoshi, or Sat, is the smallest unit of Bitcoin, like a cent to a dollar. One Bitcoin can be divided into 100 million Satoshis.)

Debating the Definition of Money: Unit of Account as Key Disagreement

CZ argued that many people already treat Bitcoin as money; most of the audience agreed by show of hands. Schiff countered with the textbook definition, emphasizing the “unit of account” function. He pointed out that few goods or salaries are denominated directly in BTC; even when salaries are paid in Bitcoin, they’re usually negotiated in USD first and then converted to BTC.

He argued that under these circumstances, Bitcoin still can’t be called real money. CZ responded that the textbook definition need not be the only standard—Bitcoin has been used directly as a unit of account in Binance contracts and investment agreements, so practical market usage should also count.

Store of Value: Zero Intrinsic Value vs 15 Years of Gains

Schiff argued Bitcoin’s price rise since inception has been entirely driven by speculative capital and doesn’t represent intrinsic value. He emphasized that gold’s real-world uses can endure for millennia, while Bitcoin’s demand depends on market belief—if that collapses, Bitcoin’s value goes to zero.

CZ countered that Bitcoin’s overall trend has been clearly up over 15 years, and it has indeed functioned as a “store of value” for long-term holders. Treating all holders as short-term speculators ignores actual market behavior.

Source of Price Support: Wealth Transfer vs Market Norm

Schiff maintained that Bitcoin’s surge is essentially latecomers transferring money to early adopters—a “wealth transfer,” not value creation. He said many late buyers think they haven’t lost money, but once liquidity dries up, losses will surface.

CZ rebutted that this phenomenon occurs in stocks, real estate, ETFs, and other markets, so it can’t be used to dismiss Bitcoin’s value.

Central Bank Reserves: Crypto and Traditional Systems Diverge

Schiff emphasized that central banks still use gold as reserves to back currencies, making gold’s role in global finance irreplaceable; Bitcoin, he claimed, could never take gold’s place.

CZ said the crypto world operates independently of central banks and doesn’t need their endorsement—Bitcoin’s value comes from its technology and global free flow.

Gold vs Bitcoin: Let the Market and Time Decide

In closing, both agreed they couldn’t convince each other. Schiff insisted gold is the true intrinsically valuable store of value and Bitcoin will ultimately return to zero.

CZ wished Schiff success with his tokenized gold project but believes Bitcoin will outperform gold in the long run. The two shook hands and left the final answer to the market and time.

An interesting moment in the debate: CZ produced a gold bar for Schiff to authenticate.

(Note: Peter Schiff publicly challenges CZ Zhao Changpeng! The debate of the century: Which better meets the conditions of money—Bitcoin or tokenized gold?)

This article, Binance CZ Debates Peter Schiff Head-to-Head: Bitcoin vs Gold—Who Wins?, first appeared on Chain News ABMedia.