Binance (CRYPTO: BNB) founder Changpeng "CZ" Zhao reignited the long-running Bitcoin (CRYPTO: BTC) vs. gold debate on Thursday after calling economist Peter Schiff's new tokenized gold project a "trust-me-bro" asset that isn't truly on-chain.
Schiff Unveils Tokenized Gold Platform
Schiff, a long-time Bitcoin critic and gold advocate, announced plans to launch a blockchain-based tokenized gold product under his company Shift Gold.
The platform will allow users to buy gold through a mobile app, store it in vaults, and transfer ownership digitally or redeem it for physical bullion.
"Ideally, the one thing that makes sense to put on a blockchain is gold," Schiff said in a video posted on X.
"You can use tokenized gold as a medium of exchange, a unit of account, and a store of value."
He described the system as a way to bring stability and physical backing to digital assets — positioning tokenized gold as an alternative to Bitcoin's volatility.
CZ Pushes Back, Says Gold Tokens Aren't Truly On-Chain
Responding to Schiff's announcement, CZ argued that tokenized gold projects rely on custodial trust rather than blockchain transparency.
"Tokenizing gold is not ‘on-chain' gold," CZ wrote on X.
"It's tokenizing that you trust some third party will give you gold at some later date — maybe decades later, during a war, after management changes, etc. It's a ‘trust-me-bro' token."
He added that this reliance on intermediaries explains why "no gold coins have really taken off" despite the metal's multi-trillion-dollar market size.
CZ's comments come as tokenized gold assets continue to expand, with total market capitalization recently topping $3.75 billion, according to CoinGecko.
Schiff Challenges CZ To Public Debate
In response, Schiff publicly challenged the Binance co-founder to a debate comparing Bitcoin and tokenized gold.
He said the discussion would focus on which asset best meets the functions of money — serving as a medium of exchange, unit of account, and store of value.
The challenge adds a fresh chapter to Schiff's ongoing rivalry with Bitcoin proponents.
Over the past year, he has repeatedly criticized BTC's speculative nature while promoting gold-backed digital assets as "sound money with intrinsic value."
BTC To Flip Gold At Some Point
CZ has also projected that Bitcoin will eventually overtake gold in market value, despite the current gap between the two assets.
Gold's market capitalization is about $30 trillion, compared with Bitcoin's roughly $2 trillion.
CZ said he doesn't know when the flip will occur but believes it's inevitable. "Gold won't go to zero," he wrote on X, "but Bitcoin is better."
Bitcoin Vs. Gold Narrative Gains Momentum
The debate comes amid shifting sentiment between the two stores of value.
Gold has rallied to near record highs in traditional markets, while Bitcoin trades in a consolidation range around $110,000 after retreating from its $126,000 peak.
Meanwhile, several analysts — including Anthony Pompliano, have suggested a rotation from gold into Bitcoin may already be under way, noting that gold has lost significant purchasing power relative to the cryptocurrency since 2020.
For investors, the Schiff-CZ clash underscores a broader divide in digital asset philosophy: whether blockchain's future lies in tokenizing real-world assets or maintaining decentralized, non-custodial systems like Bitcoin.
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