Gold Surges 44% In 2025, Sparking Debate Over Its Role As Money

Gold prices surged to an all-time high of $3,500, prompting Peter Schiff, a well-known gold advocate and Bitcoin critic, to assert that gold is money. This statement sparked a debate within the crypto community, with many questioning the validity of gold as a form of currency.

Schiff's comments came as gold futures reached a record high of $3,500 on April 22, while spot gold prices approached $3,498. Since the beginning of 2025, spot gold has increased by 31.6% in value, and its one-year price has risen by more than 44%. Meanwhile, the US dollar has experienced a significant decline, with the US Dollar Index (DXY) dropping by more than 9% in 2025.

Schiff's observations about the US dollar's decline in the context of gold's rally have gained some attention on social media. However, many commentators have questioned whether gold can be considered money, highlighting that it is not commonly used as a payment method. Some crypto advocates pointed out that gold lacks one of the four foundational functions of money: serving as a viable payment method. In contrast, cryptocurrencies like Bitcoin are able to fulfill this function, as evidenced by users paying for goods and services with Bitcoin.

The debate between gold and Bitcoin as viable forms of money has intensified amid the ongoing gold rally. Cathie Wood, a prominent Bitcoin bull and founder of ARK Invest, has argued that Bitcoin is a "much bigger idea than gold" and has the potential to gain from gold's $23 trillion market. However, others believe that gold and Bitcoin should not be seen as competitors, as they serve different purposes and have different natures.