Bitcoin (BTC) is currently struggling to uphold several popular claims, such as being a reliable hedge against inflation or a safe haven during turbulent times.
While gold has surged over 80% amid rising inflation, geopolitical tensions, and uncertain interest rates, bitcoin has declined by 14% compared to last year.
The fundamental idea behind inflation-protected assets is that their value should increase as the purchasing power of money declines. This concept has held true for gold and other precious metals but hasn’t materialized for bitcoin yet.
This growing disparity prompts an important question: why would investors choose bitcoin now when traditional assets like precious metals and stocks offer superior returns?
CoinDesk reached out to seasoned bitcoin advocates to understand their rationale for continuing to invest in the cryptocurrency:
Familiarity Breeds Confidence (Jessy Gilger, Senior Advisor at Gannett Wealth Advisors)
“Gold’s recent rally is largely driven by short-term political concerns. During periods of fear, institutions tend to stick with what they know because they often lack the vision needed to embrace transformative technological shifts. We are witnessing an unusual deviation in the GLD/BTC ratio; however, hard assets play a long-term game.”
“Gold carries historical weight while Bitcoin has demonstrated technical robustness at its protocol level for over fifteen years. Eventually, we expect market forces will bring Bitcoin back into alignment as investors recognize that digital scarcity surpasses physical limitations.”
A Shift in Ownership Dynamics (Mark Connors, CIO at Risk Dimensions)
“Zooming out won’t tell you much about 2025; instead focus on zooming in.” When examined closely, Bitcoin isn’t failing against Gold on macro grounds—it’s constrained by three internal factors often overlooked.”
“This isn’t about waning demand but rather supply redistribution. Institutional ETF inflows are substantial but don’t push prices higher—they absorb supply offloaded by early adopters over the past decade. What we’re seeing is ownership transferring hands rather than diminishing interest.”
A Tech Sector Correlation Issue (Charlie Morris, CIO ByteTree)
“Interestingly enough, proponents of both gold and bitcoin use similar narratives—limited supply; monetary expansion; inflation; conflict—but I view gold as a reserve asset rooted in reality while Bitcoin belongs more naturally within the digital realm.”
“Current challenges lie predominantly within real-world economies. Bitcoin isn’t underperforming per se—it’s retreating alongside internet stocks with which it shares strong historical correlation since inception.”
An Anticipated Delayed Rotation? (Peter Lane CEO Jacobi Asset Management)
“The ‘digital gold’ narrative hasn’t truly proven itself under pressure so far—Bitcoin hasn’t acted like an effective hedge against inflation or geopolitical risk recently.”
“Instead silver and gold have dominated performance this year.”
The broad public feels comfortable with precious metals—a trust that Bitcoin still needs time to earn fully.”
I believe there will eventually be a delayed shift toward BTC once confidence builds.”
The Need For New Demand Drivers (Anthony Pompliano Chairman & CEO ProCap Financial)
“Over recent years ,bitcoin served mainly as an inflation hedge ,but with deflation looming,it must discover fresh catalysts if it wants sustained growth .I remain optimistic about its future,but acknowledge rapid changes both macroeconomically and among market participants .”
A Lasting Answer To Inflation ?(David Parkinson – CEO Musquet,BtC lightning )
“Claims that ‘digital gold’ failed are premature noise.Bitcoin’s fixed supply combined with network expansion continues delivering superior returns versus both inflation and even gold across multiple years.Bitcoin emerges now not just as hedging tool,but Internet’s native monetary asset.It offers permanent solution where traditional hedges merely enjoy temporary spotlight.Eventually,BTC will outlast them all.”
Bitcoin’s Moment Is Approaching(Andre Dragosch – Bitwise)
“The current rally seen in precious metals can largely be attributed to investor ‘muscle memory’ —when uncertainty hits people turn first towards familiar stores of value like gold or silver.”
“Although still perceived risky relative to these traditional assets,based on store-of-value traits,I am confident BTC will gain momentum once hard assets reach inflated extremes capital begins rotating toward better-valued alternatives such as bitcoin.”
“Accordingly,the relative Mayer multiple comparing BTC vs.gold already shows undervaluation reminiscent of levels observed after FTX collapse last seen back in 2022.Additionally,the macroeconomic backdrop expected throughout 2026 coupled with global money supply dynamics strongly suggests upward correction ahead soon.”
For further insights: Bitcoin remains deep underwater compared with Gold — history indicates potential continued downside risk.