Bitcoin's Potential to Rival Gold as Inflation Hedge Gains Attention

According to Cointelegraph, Bitcoin may begin to capture market share from gold over the next decade as a hedge against inflation and geopolitical uncertainty. This perspective was shared by Blockstream CEO Adam Back during a discussion at Paris Blockchain Week 2025. Back emphasized that rising inflation and monetary instability across global economies could drive broader adoption of Bitcoin (BTC). He likened the cryptocurrency to gold, highlighting its scarcity and increasing recognition as a store of value, despite a 30% correction from its all-time high above $109,000. Back pointed out that inflation continues to affect global economies, with major currencies like the US dollar and the euro experiencing significant supply increases over the past five years. This trend, he suggested, might encourage Bitcoin's adoption as a hedge against monetary destabilization. "Eventually, that money is used to buy all the goods. So eventually they will go up by that much, particularly hard assets like housing, anything physical long term," Back explained. He projected an inflation rate of 10% to 15% for the next decade, a return difficult to achieve with stocks or housing rentals. Consequently, Bitcoin could compete with gold and begin to take on some of its use cases, such as serving as a geopolitical hedge. The Federal Reserve Bank of Cleveland anticipates the 10-year inflation rate to average 2.18% annually, based on data published on March 12. However, alternative data suggests a potential rise in inflation over the next five years. A consumer survey from the University of Michigan, released on March 28, indicated that consumer inflation expectations have surged to 5% for the next year and 4.1% over the next five years, heightening economic concerns. In addition to growing monetary instability, the approval of US-based spot Bitcoin exchange-traded funds (ETFs) and a more crypto-friendly US administration under U.S. President Donald Trump may further boost Bitcoin's adoption as an inflation hedge. Back noted that US regulators have approved the ETFs, and the current administration is removing negative regulations that previously hindered crypto adoption. He argued that private investors should adopt Bitcoin before institutional or governmental entities, as governmental involvement could trigger competitive accumulation among nations. On March 7, President Trump signed an executive order to establish a Bitcoin reserve using Bitcoin seized from criminal cases, a move seen by industry leaders as a significant step toward integrating Bitcoin into the traditional financial system.