Peter Schiff Critiques Bitcoin Amid China’s Gold Strategy

TLDR

• China holds 2,306 tonnes of gold, valued over $319 billion.
• Schiff claims Bitcoin’s value dropped over 50% against gold since 2024.
• China prefers gold over Bitcoin for stable investments.

In a recent statement, economist Peter Schiff expressed concerns over Bitcoin’s intrinsic value. He commented that China is focusing on gold rather than Bitcoin. Schiff’s remarks come as China reportedly possesses substantial gold reserves, further strengthening his critique of Bitcoin.

Schiff’s opinions are well-known in the financial world. He has long been a critic of Bitcoin, often referring to it as a speculative bubble. According to reports, China’s gold reserves reached 2,306 tonnes, valued at over $319 billion by December 2025. Schiff supports the idea that gold, unlike Bitcoin, serves as a more stable investment choice. His statement received attention as gold prices recently surged past $5,000 per ounce.

Schiff’s Historical Criticism of Cryptocurrency

Known for predicting the 2008 financial crisis, Schiff has frequently criticized cryptocurrencies. His critiques often center around Bitcoin’s potential to crash, relying on gold trading sideways. In a Coinage interview, Schiff elaborated that Bitcoin’s rise is contingent on gold’s stagnancy, negating its inflation hedge narrative.

Schiff’s past criticisms include challenging Tom Lee’s theory on gold-BTC correlation. On January 5, 2026, he argued that gold’s rally disproves Bitcoin as a safe haven alternative. His recent comments about China indicate a consistent pattern in his analysis, focusing on economic stability factors.

China’s Focus on Gold Resources

China’s approach towards investing in gold rather than Bitcoin aligns with Schiff’s viewpoint. Reports indicate that China’s gold holdings represent a strategic preference over digital currencies. The nation currently holds approximately 190,000 to 194,000 BTC, acquired from seizures, while the U.S. holds roughly 198,000 BTC. Schiff has highlighted Bitcoin’s decline of over 50% in value against gold since 2024 as a point of concern.

Personnel and institutional decisions within China reflect their hesitation to be deeply involved in the volatile cryptomarket. Instead, China seems to be focusing on traditional, stable store-of-value assets such as gold. Schiff’s statements provide insight into potential economic strategies employed by large economies regarding asset preference.

Market Data and Implications

No direct market impacts, such as funding changes or institutional allocations, have resulted from Schiff’s recent opinion. However, it highlights how macroeconomic perspectives can influence strategic investments. Related cryptocurrencies, mainly Bitcoin (BTC) and to some extent Ethereum (ETH), are often discussed in the context of such advisories, although ETH shows no related direct impacts.

Schiff’s commentary does not align with ongoing on-chain data like Total Value Locked (TVL) changes or liquidity and staking variations. His perspective serves as an individual stance without immediate ripple effects on cryptocurrency market dynamics. At the moment, market trends and price analyses continue to reveal differing opinions on crypto stability and growth.

Economic Landscape Without Policy Changes

Peter Schiff’s recent remarks do not correlate with any new regulatory changes from key bodies such as the SEC, CFTC, or ESMA. His insights focus primarily on macroeconomic preferences rather than advocating policy shifts. The economic observations center on market trends without prompting official regulatory responses.

The discussion around gold versus Bitcoin remains active in financial circles. With no additional developer or community activity, such as through GitHub or social platforms like Reddit and Discord, the discourse is primarily driven by economic analysts like Schiff.