Join Our Telegram channel to stay up to date on breaking news coverage
Binance co-founder Changpeng Zhao, aka CZ, has clashed with Bitcoin critic Peter Schiff over claims he made about tokenized gold.
The confrontation originated from comments Schiff made in a live stream with Threadguy that he plans a blockchain-based platform to launch a tokenized gold product that would have an edge over Bitcoin.
“Because gold will maintain its purchasing power so ideally the one thing that makes sense to put on a blockchain is gold,” he said.
Schiff added that his tokenized gold product will “do all the things that Bitcoin promises but can never do” and that traders would be able to purchase the tokenized gold through a platform called SchiffGold.
“And then you can transfer the quantity of gold, instantly at very low cost,” he said. ”Much cheaper and much quicker than you can transfer Bitcoin. You can pay or be paid in gold. And you can redeem it in physical gold or eventually you can redeem it in a token.”
CZ Says Tokenized Gold Tokens Are A “Trust Me Bro” Product
CZ took issue with Schiff’s comments on X.
”Most people ‘in crypto’ know this, most people ‘not in crypto’ may not understand yet,” he said. ”Tokenizing gold is NOT ‘on chain’ gold.”
He explained that tokenizing gold involves trusting a third party to give you gold at some later date, ”even after their management changes, maybe decades later, during a war, etc.”
”It’s a ‘trust me bro’ token,” he said, arguing that the level of trust that is required around tokenized gold is the reason no “gold coins” actually took off.
Saying the obvious. Most people “in crypto” know this, most people “not in crypto” may not understand yet.
Tokenizing gold is NOT “on chain” gold.
It’s tokenizing that you trust some third party will give you gold at some later date, even after their management changes, maybe… https://t.co/KMYfz2dG04
— CZ 🔶 BNB (@cz_binance) October 23, 2025
Gold Has Worst Correction In Years
After recording multiple all-time highs this year, gold has experienced its strongest correction in years this week.
That pullback saw the gold price drop from a high of $4,381 to a weekly low of $4,1115, triggering the loss of $2 trillion in market cap.
But Schiff continues to argue that the metal is a better pick than BTC.
“If gold can drop by 6.5% in one day on panic selling, imagine what can happen to Bitcoin,” he said on X. ”Such a crash may not be imaginary for long.”
Schiff said the fall in the gold price won’t result in capital rotation into Bitcoin, as many analysts forecast, and predicted instead that the drop “may set off a mass exodus out of Bitcoin.”
Instead of gold’s sharp correction setting off a widely hyped rotation into Bitcoin, it may set off a mass exodus out of Bitcoin. Look out below!
— Peter Schiff (@PeterSchiff) October 22, 2025
Bitcoin, meanwhile, has climbed more than 1% in the past 24 hours to trade at $109,563.88 as of 6:03 a.m. EST.
CZ Predicts That Bitcoin Will Surpass Gold In Market Cap
At the start of this week, the Binance founder predicted that Bitcoin could eventually surpass gold’s market cap.
Top assets by market cap (Source: CompaniesMarketCap)
According to CompaniesMarketCap, gold’s capitalization stands at over $28.77 trillion, making it the most valuable asset in the world. Bitcoin’s capitalization stands at around $2.18 trillion, ranking it as the eighth-biggest asset in the world and bigger than Facebook parent Meta and Saudi Aramco.
Related Articles:
Best Wallet – Diversify Your Crypto Portfolio
- Easy to Use, Feature-Driven Crypto Wallet
- Get Early Access to Upcoming Token ICOs
- Multi-Chain, Multi-Wallet, Non-Custodial
- Now On App Store, Google Play
- Stake To Earn Native Token $BEST
- 250,000+ Monthly Active Users
Join Our Telegram channel to stay up to date on breaking news coverage
Credit: Source link
