Gold futures surged above $3,500 on April 22, marking a historic high that prompted longtime gold advocate and Bitcoin critic Peter Schiff to reignite the debate on what constitutes “real money.” In a post on X, Schiff declared, “Gold is not just any commodity, it’s money,” following gold’s rapid price rally.
The comment came as gold spot prices nearly reached the same milestone, peaking at $3,498, according to TradingView data. Gold has gained over 31% since the start of 2025 and is up more than 44% year-over-year.
Schiff Warns of “End of US Dollar Dominance”
Schiff didn’t stop at praising gold. He sounded alarm bells about the weakening US economy, stating that the gold surge signals a deeper crisis: the decline of the dollar’s global dominance.
“This is the end of the US dollar’s dominance. Life in America is about to change in ways few can imagine,” he said.
Data supports some of Schiff’s concerns. The US Dollar Index (DXY) has plunged more than 9% since the start of the year, reflecting declining investor confidence in the greenback.
Crypto Community Claps Back: “Gold Is Not Practical Money”
While Schiff’s gold evangelism gained traction, it also drew heavy criticism — especially from the crypto crowd. Many pointed out that gold’s utility as money is outdated in today’s digital economy.
“Gold isn’t used for payments anymore. Try shaving off a piece of your gold bar at Starbucks,” said crypto investor Mike Alfred sarcastically on X, highlighting the impracticality of using gold for everyday transactions.
Another user chimed in: “I paid for my haircut last week in Bitcoin. Merchants won’t accept gold because how do they test if it’s real?”
Bitcoin vs Gold: A Renewed Battle of Narratives
The timing of Schiff’s remarks reignited the ongoing debate between gold and Bitcoin, often dubbed “digital gold.” While both assets are seen as stores of value, their functions diverge. Bitcoin is increasingly being used for real-world payments, while gold remains mostly a speculative hedge.
ARK Invest CEO Cathie Wood weighed in, arguing that Bitcoin is a “much bigger idea than gold” and could tap into the $23 trillion gold market in the long run.
Still, not everyone sees the two assets in direct competition. Some investors believe gold and Bitcoin serve different roles — gold as a historical hedge, and Bitcoin as a modern, programmable alternative.
