Peter Schiff’s Gold vs. Bitcoin Debate: A 2025 Perspective on Central Bank Preferences
Renowned economist and gold advocate Peter Schiff has once again stirred the ongoing debate between gold and Bitcoin. In a recent post on X (formerly Twitter), Schiff questioned Bitcoin’s role as a future reserve asset, highlighting that global central banks are overwhelmingly favoring gold over Bitcoin. He wrote,
“If Bitcoin is the future, why are central banks preparing for a post-dollar world by buying gold, not Bitcoin?”
Central Banks’ Gold Accumulation Surges
Schiff’s comments come amid a significant increase in gold purchases by central banks. In 2024, central banks added 1,044.6 metric tons of gold to their reserves, marking the third consecutive year of net purchases exceeding 1,000 metric tons. This trend is driven by various factors, including geopolitical instability and concerns over the U.S. dollar’s declining dominance.
Emerging markets, in particular, are leading this gold-buying spree. Poland, for instance, purchased 89.54 metric tons of gold in 2024, bringing its total reserves to 448.2 metric tons. Analysts suggest that emerging market central banks should increase their gold holdings from 10% to 30% of reserves to buffer against sanctions and diversify away from Western currencies.
Bitcoin’s Institutional Adoption and Price Movements
While central banks are gravitating towards gold, Bitcoin has seen increased adoption among institutional investors. In 2025, Bitcoin reached an all-time high of nearly $112,000, driven by growing acceptance in both political and financial circles. Major financial institutions like JPMorgan Chase, Morgan Stanley, and BlackRock have expanded their crypto offerings, with significant inflows into Bitcoin ETFs such as BlackRock’s iShares Bitcoin Trust.
Additionally, political support has bolstered Bitcoin’s profile. President Donald Trump announced the creation of a strategic Bitcoin reserve, aiming to position the U.S. as a leader in cryptocurrency adoption. States like Texas have also taken steps to establish their own Bitcoin reserves.
Diverging Strategies: Gold vs. Bitcoin
Despite Bitcoin’s institutional adoption, central banks remain cautious. The Czech National Bank, for example, is considering holding Bitcoin in its reserves, potentially becoming the first Western central bank to do so. However, other institutions, like the Swiss National Bank, have rebuffed the idea of including Bitcoin as a reserve asset.
Schiff warns that Americans, who hold nearly half of all Bitcoin, may face steep losses due to regulatory ambiguity and market volatility. He contrasts this with gold’s performance, which trades at $3,357.4 per ounce—up 1.82% in a day—while Bitcoin sits at $108,148, down 2.31% on the day but still up 17% over the past month.
Final Thoughts
The debate between gold and Bitcoin as preferred reserve assets continues to evolve. While central banks are doubling down on gold to hedge against geopolitical risks and currency volatility, Bitcoin’s rise is fueled by institutional adoption and political support. As Schiff emphasizes, “Gold wins, Bitcoin loses,” but the dynamic landscape suggests that both assets may play significant roles in the future of global finance.
