Bitcoin VS Gold Age Showdown! Trump delays tariffs, CZ takes on Peter Schiff in debate

On October 27, Bitcoin and stock futures rose, while gold prices fell, in response to the United States delaying the imposition of severe new tariffs on Chinese goods that were scheduled for November 1. Against this backdrop of temporary relief, Bitcoin's long-time critic Peter Schiff publicly challenged Binance founder CZ to a high-profile debate on Bitcoin versus tokenized gold.

Trump's tariff delay triggers a market bull rebound

(Source: CoinMarketCap)

Trump previously claimed in a blog post that an agreement had been reached between the U.S. and China, awaiting final approval from Chinese President Xi Jinping. According to his statement, China would “pre-provide a full set of magnets and rare earths,” while the U.S. would continue to allow Chinese students to enter American universities for study. Trump stated that the agreement includes a 55% tariff on goods imported from China and a 10% tariff on goods imported from the U.S., and described the bilateral relationship as “very good.”

This news triggered a strong market reaction on October 27. The price of Bitcoin rose more than 3% within hours after the announcement, briefly breaking through the key psychological level of 1,106,000 USD. Stock futures also rose in tandem, with Nasdaq futures up over 1.5% and Dow futures gaining nearly 1%. In contrast, traditional safe-haven asset gold saw a pullback, with spot gold prices falling from a historical high of 3,700 USD to around 3,650 USD.

This market reaction reflects investors' optimistic interpretation of Trump's tariff relief. Originally, the market was generally concerned that the new tariffs, which might be implemented on November 1, would exacerbate inflationary pressures, harm American consumers' purchasing power, and trigger an escalation of the global trade war. The postponement of tariffs means that these risks are temporarily alleviated in the short term, providing upward space for risk assets (such as stocks and Bitcoin).

However, market commentators, including economist Peter Schiff, have criticized these trade terms. Schiff interpreted Trump's remarks as “Americans are paying 55% in tariffs while the Chinese are paying only 10%” and believes that the policy actually burdens American consumers rather than Chinese consumers. This criticism points out that tariffs are ultimately paid by importers, who typically pass the costs onto consumers, so the 55% tariff in the U.S. is effectively borne by Americans themselves.

Peter Schiff Challenges CZ: Bitcoin VS Tokenization of Gold

As the market fluctuates due to news of Trump's tariffs, steadfast gold advocate Peter Schiff has directly challenged CZ on X (formerly Twitter), proposing a formal debate on a fundamental economic question: which asset, Bitcoin or tokenization of physical gold, better meets the three fundamental properties of money?

Three Core Functions of Currency:

Medium of Exchange: Can it be easily used for trading?

Accounting unit: Can it reliably measure value?

Store of Value: Can it maintain its purchasing power over the long term?

This framework hits the core of Schiff's argument, which is that Bitcoin has failed these tests, while he believes gold (even in tokenized form) has succeeded. This debate will directly confront one of the most influential figures in the cryptocurrency space, CZ, making it a high-stakes ideological clash between “digital gold” and “real gold.”

Peter Schiff has long been a critic of Bitcoin, insisting that it lacks intrinsic value, relies too much on speculative sentiment, and fails to provide a true hedge in extreme market conditions. He often cites gold as a comparison, emphasizing that gold has thousands of years of historical validation, industrial uses, and recognition by central banks around the world.

On the contrary, Bitcoin supporters believe that digital scarcity, decentralization, divisibility, and transferability make Bitcoin a “superior gold.” They point out that the physical properties of gold make it difficult to transport, verify, and divide, while Bitcoin can be transferred to any corner of the world in seconds, without the need for a trusted intermediary.

CZ accepts the challenge proposal for the Dubai showdown

CZ accepted Schiff's invitation, suggesting that the debate be held during Binance Blockchain Week in Dubai this December. In his response, CZ acknowledged that he “might lose this debate,” but stated he was ready to represent Bitcoin. He also added that this event could bring more attention to Schiff's tokenization project.

CZ's humility showcases his strategic wisdom. As the founder of the world's largest cryptocurrency exchange, it is no easy task for CZ to represent Bitcoin in public debates, especially when facing experienced economists and debaters like Peter Schiff. However, his acceptance itself is a victory, as it elevates this debate to a globally watched event.

Dubai's choices are also of significant strategic importance. Dubai has become one of the important hubs of the global cryptocurrency industry, with a relatively friendly regulatory environment that attracts a large number of blockchain companies and crypto millionaires. As one of the largest cryptocurrency events in the region, Binance Blockchain Week will provide a perfect stage and a broad audience for this debate.

According to the latest research by JPMorgan, Bitcoin is undervalued relative to gold, setting its fair value at $126,000. This valuation is based on a comparison of the market values of Bitcoin and gold, taking into account the differences in their volatility. If Bitcoin can reduce its volatility and enhance its reliability as a store of value, there is room for further price appreciation. This institutional-level recognition provides CZ with ammunition in the debate.

Elon Musk hosting? 54,000 people vote, sparking global attention

To highlight the public's immense interest in this potential showdown, Schiff initiated a poll on X, inviting fans to choose a moderator. The response to the poll was enthusiastic, garnering over 54,000 votes in total. The results showed that the support rates of the two leading figures in online discussions were neck and neck: Tesla CEO Elon Musk slightly ahead with a support rate of 40.5%, followed closely by podcaster Joe Rogan at 39.2%. The support rates for political commentator Tucker Carlson and podcaster Russell Brand were significantly lower.

Musk's leadership is not surprising. As one of the most influential entrepreneurs in the world, Musk has a complex history in the Bitcoin and cryptocurrency space. His company Tesla once made significant purchases of Bitcoin, only to suspend accepting Bitcoin payments later due to environmental concerns. Musk's comments on social media often trigger violent market fluctuations, and his support for Dogecoin has made it one of the most popular meme coins.

If Musk really agrees to host this debate, it will bring unparalleled media attention to the event. His X platform has over 200 million followers, and any event he participates in will become global headlines. However, there is still a lot of uncertainty about whether Musk will participate, as he usually focuses on the operations of Tesla, SpaceX, and the X platform, rarely engaging in such public debates.

Joe Rogan's high approval ratings are also worth noting. As one of the most popular podcast hosts in the world, Rogan's show often invites controversial figures for in-depth conversations. His interview style is relaxed yet profound, allowing guests to fully express their viewpoints. If Rogan were to host, this debate could take place on his podcast, reaching tens of millions of listeners.

The cryptocurrency news media Watcher Guru has also expressed willingness to hold this debate on X Spaces, indicating that multiple platforms are competing for this event. X Spaces, as an audio live streaming platform, allows millions of users worldwide to listen in real-time and participate in discussions through comments. This openness and immediacy will make the debate one of the most widely disseminated events in the history of cryptocurrency.

The Deep Connection Between Trump's Tariffs and the Bitcoin-Gold Showdown

On the surface, Trump's tariff policy and the Bitcoin-gold debate seem to be two independent events, but they actually share a core theme: what constitutes real value storage in an uncertain global economic environment? The concerns over the trade war sparked by Trump's tariffs and inflation expectations are key factors driving investors to seek safe-haven assets. When the purchasing power of fiat currency is threatened, both Bitcoin and gold are seen as potential hedging tools.

The debate between Peter Schiff and CZ essentially explores who can better play this role. Schiff believes that gold has been validated over thousands of years as a reliable store of value. CZ represents a new generation of investors who believe that digital scarcity and decentralization make Bitcoin the ultimate hedge asset of the digital age. The volatility of Trump's tariffs and policy uncertainty is the macro backdrop that has drawn widespread attention to this debate.