Gold Bug Peter Schiff Slams Bitcoin as ’Backed by Nothing’ in Heated Tokenized Gold Debate with Binance’s CZ

Crypto's biggest bull just went toe-to-toe with its loudest critic. The debate? What real 'value' looks like in the digital age.

Digital Gold vs. The Real Thing

Peter Schiff, the perennial gold advocate, fired the opening shot. He dismissed Bitcoin's entire value proposition, calling it a speculative asset backed by nothing but hype. His argument hinges on a classic finance trope: intrinsic value. Gold has industrial and ornamental uses; Bitcoin has code.

Binance founder Changpeng 'CZ' Zhao didn't back down. He countered that Bitcoin's backing is more robust than any single commodity—it's backed by a decentralized network, immutable mathematics, and the collective belief of millions. For the crypto-native, the code *is* the commodity.

The Tokenization Tango

The real friction point was tokenized gold—digital tokens representing ownership of physical bullion. Schiff views it as a bridge for crypto believers to 'see the light.' CZ sees it as an inevitable on-ramp for traditional asset classes into the blockchain ecosystem, a feature, not a concession.

It's the ultimate clash of financial philosophies. One side sees a store of value forged over millennia. The other sees a protocol for value transfer invented for the internet era. Both are vying for the same title: the ultimate hedge against traditional finance's follies.

At its core, the debate cuts to whether value is derived from physical scarcity or verifiable digital scarcity. Schiff's gold has a 5,000-year head start. Bitcoin's blockchain has 100,000 times the computing power securing it.

Who Wins the Narrative?

These skirmishes aren't just talk. They shape market sentiment and investor allocation. Every time a gold bug scoffs at 'magic internet money,' a crypto dev builds another decentralized exchange. It's the old guard protecting its moat versus the new guard building a bypass.

So, who's right? In one corner, an asset that central banks stockpile and you can hold in your hand. In the other, an asset that's survived over a decade of obituaries and thrives on being 'backed by nothing'—except, perhaps, the growing distrust in the institutions that print the stuff supposedly backed by gold.

Let's be cynical for a second: the finance world loves an asset it can't easily rehypothecate or inflate away. Gold had its chance. Now, the market is voting with its wallet—and the ticker isn't GLD.

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

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.

JUST IN: Binance Founder CZ showcasing Peter Schiff how #Bitcoin is better than gold. pic.twitter.com/z5ygW62FD8

— bitcoin Magazine (@BitcoinMagazine) December 4, 2025

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

The agreement ended when the debate turned to Bitcoin’s fundamental value. Schiff argued that Bitcoin is “backed by nothing” like fiat currency. He said tokenized gold derives value from the physical metal, while Bitcoin only has value because people can transfer it.

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.