Peter Schiff, a prominent gold advocate, has reignited the debate over Bitcoin’s role as a safe haven, asserting the cryptocurrency has failed as an alternative to fiat money despite its strong performance this year.
Schiff, a long-standing skeptic of Bitcoin, stated that its inherent volatility prevents it from fulfilling its promise as “digital gold.” His comments came as Bitcoin recently dipped below the USD $108,000 mark.
The investor emphasized that gold remains the superior choice for preserving value against inflation and the risks of the traditional financial system. He made these remarks on his X account and during appearances on specialized financial media.
The discussion centers on the “debasement trade,” an investment strategy aimed at protecting against the devaluation of fiat currencies. While gold has traditionally served this role, Bitcoin has been considered a modern digital alternative.
However, recent performance data indicates a nuanced picture. Bitcoin has climbed 60.8% year-to-date in 2025. Gold also posted significant gains, rising 60.6% over the same period. Silver, meanwhile, emerged as the top performer, increasing more than 67%. These assets collectively outperformed traditional stock markets, which reached record valuations but did not match the “debasement trade” returns.
The latest Bitcoin price decline, which saw it touch USD $107,840, was attributed to renewed volatility and widespread liquidations in the derivatives market. Roughly USD $155 million in long positions were eliminated within a four-hour window, reducing Bitcoin’s open interest to USD $33.32 billion. Market data showed Bitcoin’s daily volatility increased to 1.8% in October following weeks of more stable movements.
Despite these fluctuations, analysts suggest the Bitcoin market has matured. Rapid liquidation cycles no longer trigger the widespread panic seen in previous years. A recent JPMorgan report indicated that institutional investors were not the cause of the drop, attributing the market movements instead to “native” sector investors liquidating positions.
Even with Schiff’s view that Bitcoin has failed as a fiat substitute, macroeconomic data indicates it continues to act as a counterweight to U.S. dollar weakness. The dollar has shown fragility against the euro and other major currencies in 2025, while Bitcoin has maintained its upward momentum and achieved several historical record highs.
Data cited by Cryptopolitan suggests Bitcoin’s surge has largely offset the dollar’s depreciation in recent years, particularly in regions grappling with inflation or a loss of confidence in local currencies. Bitcoin is still perceived by many as an asset with significant growth potential, underpinned by its scarcity and increasing institutional adoption.
The ideological confrontation between gold and Bitcoin proponents persists, fueling the debate over which asset will serve as the future safe haven. For Schiff, gold maintains its historical role as a tangible store of value, while Bitcoin remains a speculative asset.
Nonetheless, even critics acknowledge that Bitcoin’s ecosystem has matured significantly. It boasts a solid base of long-term holders and demonstrates a growing correlation with global liquidity flows. Despite the ongoing challenge of volatility, Bitcoin’s resilience over a decade, having withstood numerous attacks, bubbles, and collapses, solidifies its position as a serious alternative within modern financial markets.