Bitcoin vs. gold: is there a winner? From financial institutions to everyday investors, the debate between which to buy, the popular cryptocurrency and the lustrous metal, has become a hot topic in recent years.
Why?
Bitcoin shares many of the same qualities as gold. Of course, these similarities are contrasted with stark differences. That’s what we’ll cover today.
Let’s look at Bitcoin and gold and how they stack up against each other.
In the Bitcoin vs. gold debate, we have to start with the original precious commodity: gold, one of the oldest stores of value.
When we say old, we mean it.
It was first used as a medium of exchange in ancient Egypt in around 1500 BC* (as mentioned on focus-economics.com). Its role in the rise of trade and commerce across cultures and civilizations is undeniable.
Why? It's a scarce, unique, and durable store of wealth.
Fast-forward a few thousand years, and gold is still an essential commodity. Many major economies once adopted the Gold Standard, which meant currency was backed by gold reserves. In the U.S., the Bretton Woods system pegged the dollar to gold after World War II. However, in the 1970s, the U.S. abandoned its Gold Standard and shifted to fiat currency.
Fiat just means it’s not backed by gold, which will become an important point a little later.
Even without the Gold Standard, the precious metal still holds a solid reputation as a hedge against inflation and economic uncertainty. It’s used in central bank reserves, industry, and jewelry while remaining a key commodity for investors looking to diversify their portfolios.
If that’s gold, what is digital gold?
Bitcoin is the original decentralized, peer-to-peer digital cash system.
Created by anonymous founder Satoshi Nakamoto, Bitcoin was built as a revolutionary blockchain technology designed to replace the global financial system.
A lofty task, no doubt.
Since its inception, Bitcoin has gone from nice digital technology to widespread adoption. It’s been the subject of media headlines and public fascination for almost 15 years now. While many view Bitcoin as an effective store of value, others know it for its famous price volatility.
Even so, it’s earned a nickname as digital gold for a few good reasons, which we’ll touch on in a bit.
In the last few years, it’s increased its reputation as a store of value, with heightened institutional and corporate interest. Bitcoin is even making waves for nations and governments, with big players like the U.S. in active discussions about the creation of a national reserve of stockpile.
While we’re still relatively early, it's hard to deny this digital currency’s newfound position as a leader in the future of finance.
Bitcoin vs. Gold: how do these two square up to each other?
That’s what we’ll be talking about in this next section. While Bitcoin has earned the nickname “digital gold,” there’s quite a bit of difference between the two.
Let’s explore.
When comparing Bitcoin vs. gold, price performance is usually the first thing an investor might look at.
Here are some things to know:
Both Bitcoin and gold are seen as inflation hedges.
Gold has a longstanding relationship with inflation. While some argue that when inflation is up, so are gold prices, others argue that the relationship is a bit more complicated. While it's true that once the Gold Standard was abandoned, and inflation subsequently rose in the 1970s, that gold increased in value relative to the U.S. dollar* (as mentioned on newtonim.com).
Even so, data shows that there is no meaningful relationship between the price of gold and inflation* (read more at cfainstitute.org).
As for Bitcoin, its role as an inflation hedge lacks the historical data to support that claim. It’s only seen as a potential hedge, given its similar properties to gold.
As you might imagine, the storage and security considerations for a physical commodity are much different from those for a digital currency.
For gold, these include:
For Bitcoin, these challenges are a bit different:
There is also the concept of direct ownership. You can own physical gold, but you can also purchase a gold ETF (exchange-traded fund) where actual gold is stored on your behalf, and you own a share of that managed gold. Bitcoin is similar in that you can own a spot Bitcoin ETF, but you can also own Bitcoin directly.
Bitcoin ATMs make direct ownership of Bitcoin incredibly simple.
You can easily purchase Bitcoin with cash at one of our 8,400 Bitcoin ATM locations (as of February 2025) across the U.S., Canada, and Puerto Rico.
Gold is a highly liquid market, averaging $227 billion per day* (mentioned on deccanchronicle.com) in trading volume in 2024. It is traded on global exchanges and through gold dealers, banks, brokerages, and ETFs.
Bitcoin, on the other hand, trades on global cryptocurrency exchanges as well as ETFs and can be purchased directly from Bitcoin ATMs and OTC (over-the-counter) deals.
These transactions are often quite fast, depending on things like network congestion.
Bitcoin has made great strides in global adoption in recent years, but gold is the clear winner in the adoption debate.
Gold is universally recognized as a store of value and medium of exchange, and it is held by central banks and governments as reserves. It also has uses in jewelry, electronics, and industrial applications.
Bitcoin, on the other hand, is only now seeing mass and corporate adoption.
In the last few years, countries like El Salvador have adopted Bitcoin with enthusiasm. Even the U.S. is warming up to Bitcoin. As we mentioned earlier, the idea of a Bitcoin Strategic Reserve is close to becoming a reality.
Moreover, with spot Bitcoin ETFs, more and more people now have access to the popular cryptocurrency.
One of the key characteristics that tie Bitcoin and gold together is scarcity.
With Gold, there is, of course, a finite supply both in circulation and within the earth. It’s estimated that around 212,582 tonnes of gold* (as mentioned gold.org) has already been mined.
How much is left? The U.S. Geological Survey estimates that around 50,000 tonnes* (learn more at bbc.com) are left in gold stocks below ground.
Bitcoin, on the other hand, paints a more transparent picture.
There will only ever be 21 million Bitcoin. This fixed supply is by design and is in part what gives the cryptocurrency its reputation as a store of value. As of December 2024, there are around 1.1 million Bitcoin left to be mined.
The decreasing supply of both gold and Bitcoin over time drives scarcity and potential value. This scarcity attracts investors who may be seeking both Bitcoin or gold as inflation hedges or stores of value.
Compare this to stocks or fiat currencies where the supply can increase, hence the role of these two as potential hedges against inflation.
In the Bitcoin vs. gold debate, there are as many similarities as there are differences.
While they both represent scarce supplies with inflation-hedging qualities, there’s no denying gold’s long-standing reputation and role within civilization.
Bitcoin, though, is as much like gold as it is something new. Its story is only now being written. Even so, if the last decade is anything to go off of, Bitcoin may find itself shoulder-to-shoulder with gold in both value and widespread adoption very soon.
To get your hands on Bitcoin, there’s no better starting point than a Bitcoin ATM.
These convenient cash-to-coin machines put direct Bitcoin ownership at your fingertips. Here at Bitcoin Depot, we operate the largest Bitcoin ATM network across the U.S., Canada, and Puerto Rico, with over 8,4000 locations (as of February 2025).
Find your nearest Bitcoin ATM to start your own crypto journey.
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