Peter Schiff Argues Pricing Bitcoin (BTC) in Gold Gives a Clearer Picture of the Market

Bitcoin hit an all-time high of around $109,071 in January. However, it has since dropped nearly 25%, settling at about $80,000.

Bitcoin hit an all-time high of around $109,071 in January. However, it has since dropped nearly 25%, settling at about $80,000.

The fluctuations in Bitcoin, alongside traditional assets like gold and the S&P 500, highlight the complex nature of today’s financial markets.

Amidst the uncertainty and volatility, Bitcoin critic Peter Schiff highlighted that while the S&P 500 is only down 4% in 2025, when you measure it in gold, it’s actually down 18%, almost reaching a bear market.

He shared that pricing stocks in gold gives a clearer picture of inflation because gold holds its value over time. Since December 31, 2000, the S&P 500 has lost 60% of its value when priced in gold, which shows a major long-term decline.

S&P500 is down 4% vs. 2024 in 2025. But it is down 18% vs. Gold, almost reaching bear market territory.

It is more accurate to price stocks in Gold to measure inflation, as Gold keeps its purchasing power over time. But even in nominal terms, the chart is striking.

Since 12/31/2000, the S&P500 has lost 60% of its value when priced in Gold.

It is a tale of two markets. The S&P500 has soared to new highs in fiat currency terms, but it has been decimated by inflation when priced in Gold.

Gold is still real money. Only central banks use fiat currency. People prefer to be paid in Bitcoin. But you can’t buy anything useful with Bitcoin. You can buy anything useful with Gold. It is the original and best form of payment.

Today, it is becoming easier to spend Gold thanks to tokenized Gold.

And it is becoming harder to spend Bitcoin as it is becoming less accepted by merchants.

But even without being able to spend it, people still prefer to be paid in Bitcoin. They would rather be paid in units of something scarce which is not going down in value.

Those who are paid in fiat currency are the losers. Their purchasing power is decreasing rapidly.

Those who are paid in Bitcoin see its value decreasing rapidly, but at least it is increasing in value vs. the U.S. dollar. So they are able to buy more dollars to pay for the increasing prices of the goods and services they need.

But those who are paid in Gold are the only ones who are really winning. They are able to buy anything they want and they will never lose its purchasing power.

An analyst, however, argued that you can’t price things in gold because it’s not commonly used for purchases anymore.

To this, Peter Schiff further responded that tokenized gold is now a practical way to spend gold, making it easier to use than Bitcoin.

Schiff added that gold is still real money. Only central banks use fiat currency.

Another X user pointed out that despite Peter measuring stocks in gold for decades, equities continue to hit new highs while gold lags behind Bitcoin, suggesting it might be time for a new benchmark.

But Peter responded by saying that stocks are not reaching new highs when priced in gold and dismissed Bitcoin as irrelevant.

He further noted that the price of everything is going up as governments destroy the value of fiat currencies by creating inflation.

When asked if he was open to returning to the gold standard, Peter Schiff replied, “Of course.”

Furthermore, Schiff also believes that it’s not only possible, but highly probable this year for gold to teach $4,000.

Previously, he pointed out that past bear markets saw significant declines in the Nasdaq, and if it falls 40%, Bitcoin could drop to $20,000 or lower.

Peter Schiff has warned that Bitcoin could face a sharp decline if the Nasdaq enters a bear market. He pointed out that with the Nasdaq already down 12%, if it drops by 20%, Bitcoin could fall to around $65,000.

Gold has hit a new all-time high, rising above $3,025 per ounce with a 15% increase since the start of the year. Meanwhile, Bitcoin (BTC) is down 10% year-to-date.

Gold’s rally is being driven by strong inflows into gold ETFs and its role as a safe-haven asset amid geopolitical uncertainty.

Discussions of new tariffs in the U.S. under President Trump have also boosted demand for U.S. equities. Over the past year, gold has surged 40%, far outpacing Bitcoin’s 16% gain.