Recently, I was asked to weigh in on one of the most contentious debates of the past few years: Gold vs. Bitcoin.
I’m not here to dispute or rewrite the original article, but I do want to provide a bit more context about why I chose to support Bitcoin. In short, it’s the longevity factor.
Let’s start with gold. Historically, gold has always acted as a hedge against inflation and debased currencies. In nearly every economic climate, gold has maintained its value, offering individuals a means to preserve and protect their wealth.
Gold has a long and fascinating history. First coveted for its beauty, it was used to create jewelry and other decorative objects. But it was in Ancient Egypt that gold became a medium of exchange, facilitating the trade of goods and services. 1 Over the last 6,000 years, gold has been—bar none—the most influential asset in global economies, markets, and empires. From the gold standard to the Gold Rush, gold has consistently proven its worth as either a hedge or a speculative investment. Not many assets can make such a claim.
Additionally, gold has a fantastic reputation: people trust gold and view it as a sign of wealth and power. In 2023, Investing News Network reported that central banks around the world held roughly 35,715 metric tons of gold, roughly one-fifth of all the gold ever mined. 2 That number was expected to increase, and it has. 3 “Central banks purchase gold for a number of reasons: to mitigate risk, to hedge against inflation, and to promote economic stability. Increased concerns over another global financial crisis have, as expected, led central banks once again to build up their gold reserves.” For central banks, holding gold is a crucial method of safeguarding against unexpected economic shocks.
In today’s uncertain economy, marked by political upheaval and high inflation, investing in gold remains a prudent hedge and a safe bet. It’s part of the reason gold has always been a key element of our investment process at Everglades Parkland Advisors.
Gold becomes especially relevant in moments like these, when the geopolitical environment feels like a boiling pot. Historically, gold has performed well in times of international tension because individuals and countries alike want to retain—and increase—their gold reserves, seeing it as a “safe haven” for their wealth. 4 As David Weinerman mentioned in the article above, domestic factors such as tariffs and a ballooning national debt have contributed to gold’s recent performance, driven by concerns about economic stability.
However, the conversation becomes even more intriguing when Bitcoin enters the scene. While it’s still in its infancy, Bitcoin has the potential to rival—and possibly even replace—gold in the future as a classic hedge against inflation or an investment for wealth protection.
As emphasized in the article, Bitcoin is more scarce than gold, more liquid, and is backed by state-of-the-art technological innovations that record and verify transactions. Bitcoin has been the best-performing asset of the last decade, and in 2024, its price broke an all-time high of $100,000.
Thanks to its decentralized architecture and built-in scarcity, Bitcoin has become an appealing inflation hedge for many investors. With increased regulation, institutional adoption, and market maturity, Bitcoin is poised to become a classic inflation hedge, much like gold, but with new and enhanced features.
That’s not to say that there aren’t risks. The technology continues to improve and is nearly foolproof, but bankruptcies, scams, and unregulated platforms have plagued the broader cryptocurrency market. Investors must exercise caution when investing in new coins or trusting untested platforms to secure their digital assets.
Of course, due to the newness of Bitcoin, it is incredibly volatile, which can be a critical consideration. For risk-tolerant investors, Bitcoin’s volatility adds to its appeal. However, those who are more hesitant may find this inherent volatility to be a deterrent. I generally advise clients to take small bites—consider allocating between 1% and 5% of their portfolio to Bitcoin, depending on their risk tolerance and investment goals.
As mentioned, gold has historically outperformed Bitcoin during periods of geopolitical strife; however, it’s worth noting that Bitcoin has also made a significant impact. Because it’s decentralized—there’s no need for a third party to ensure security or transparency—Bitcoin appeals to many countries. For example, it has been used on both sides of the Russia–Ukraine conflict, by Iran to circumvent U.S. sanctions, and, controversially, it was reportedly used by Hamas, which spent $165 million in crypto to finance their infamous October 7th attack on Israel.
This highlights Bitcoin’s strengths and weaknesses: decentralization. While decentralization insulates Bitcoin from the control of a single government or central bank, keeping it somewhat unaffected by poor monetary policy, it also opens the door to potential abuse. However, as adoption continues and regulations evolve, I believe we’ll see increasing oversight that’ll, over time, close many loopholes.
However, in the long term, Bitcoin may overtake gold. We’re already seeing real-world adoption in countries like El Salvador, Argentina, and Turkey. These countries have extremely high inflation rates, causing residents to seek alternative methods for preserving the value of their cash. This trend reflects the significant role gold has played throughout its long history, particularly in similar economic climates.
Additionally, from a technological standpoint, Bitcoin has a few advantages over gold. Bitcoin’s blockchain uses cryptographic algorithms and a global network of miners to validate and secure every transaction. This process is highly energy-intensive, but also makes it nearly impossible to hack or tamper with. Gold, on the other hand, has long been plagued by issues of being heavy, easily tampered with, and highly susceptible to theft. Gold’s logistical challenges, such as moving it from one place to another, do not plague Bitcoin.
Especially as younger generations enter the market, it isn’t hard to imagine Bitcoin making significant gains on gold. Children raised in a world of cutting-edge technology are less wary of digital, non-tangible assets and investments. With adoption increasing every day, central banks are exploring the possibilities of digital currencies. Countries like El Salvador, as mentioned above, have made Bitcoin legal tender. If Bitcoin were to grab even 10% of gold’s estimated $17 trillion market cap, the price could rise dramatically.
Given its security, technological foundation, and decentralized nature, Bitcoin is still in its early stages. Only time will tell what it ultimately becomes, but it has the potential to reshape how we approach currency, investing, and global markets.
Finally, but perhaps most importantly, while the article above frames Bitcoin and gold as rivals, that doesn’t necessarily need to be the case. Many experts view them as complementary: gold provides stability while Bitcoin offers long-term growth. Gold offers tried-and-true protection, while Bitcoin offers cutting-edge technological security. Together, they create a compelling opportunity, providing investors with a well-rounded portfolio. I strongly agree with this point of view: Gold isn’t going anywhere anytime soon, and neither is Bitcoin, so there is little reason to pit them against each other. Ultimately, both are essential assets to have in your portfolio.
1 Symeonidis, P. (2023, September 1). Gold: the most precious of metals. FocusEconomics. https://www.focus-economics.com/blog/gold-the-most-precious-of-metals/
2 Pistilli, M. (2025, February 13). Top 10 Central Bank gold reserves. Investing News Network (INN). https://investingnews.com/daily/resource-investing/precious-metals-investing/gold-investing/top-central-ba nk-gold-holdings/
3 Central banks keep gold in focus in February. (2025, April 3). World Gold Council. https://www.gold.org/goldhub/gold-focus/2025/04/central-banks-keep-gold-focus-february
4 Ngo, V. M., Van Nguyen, P., & Hoang, Y. H. (2024). The impacts of geopolitical risks on gold, oil and financial reserve management. Resources Policy, 90, 104688. https://doi.org/10.1016/j.resourpol.2024.104688
