Tokenized Gold to Eclipse Bitcoin, Says Schiff
Financial commentator Peter Schiff has predicted that tokenized gold will supplant Bitcoin and stablecoins as the preferred monetary asset. He cites BioSig Technologies’ $1.1 billion funding round to build a gold-backed treasury through Solana-based tokenization platform Streamex. According to Schiff, tokenized gold improves on Bitcoin’s monetary characteristics, such as scarcity, security, and stability, while eliminating the need for U.S. dollar-backed stablecoins. He argues that tokenized gold solves Bitcoin’s volatility and counterparty risks, offering global access, enhanced liquidity, and lower barriers to entry. However, critics warn of centralization and reliance on custodial counterparties, exposing holders to manipulation and counterparty risk. The announcement underscores rising competition between gold-backed tokens and cryptocurrencies for safe-haven appeal.
Bearish
Peter Schiff’s prediction that tokenized gold will eclipse Bitcoin could divert safe-haven assets away from Bitcoin. Tokenized gold projects like PAXG have shown growing institutional adoption, suggesting that traders may reallocate capital into gold-backed tokens offering lower counterparty risk and enhanced liquidity. This shift could pressure Bitcoin demand in the short term. Historically, introduction of gold-backed tokens has drawn niche interest but lacked broad market impact. However, significant funding rounds, such as BioSig’s $1.1 billion treasury, may signal deeper capital inflows into tokenized gold. In the long term, Bitcoin’s decentralized network and established liquidity may sustain demand, making this development a market headwind but not a fundamental threat.