The stock market had a wonderful performance last year. That bullish fever has spilled over into other assets, like gold. The price of the precious metal rose 26% in 2024.
But that gain cannot be boasted Bitcoin (CRYPTO: BTC)which grew by 119% last year. If you have extra cash to work with, you may be wondering where to park it.
Here’s why the world’s top cryptocurrency is a better buy than gold in 2025 and beyond.
Both Bitcoin and gold are considered stores of value. It makes sense why: this property is rare.
Thanks to this, there will only ever be 21 million Bitcoin coins in circulation halving schedule and a hard cover that is engraved with its code. And there is only a certain amount of gold in the Earth’s crust.
That store of value perspective explains why people often see these two assets together. Investors also classify Bitcoin and gold as assets desirable in times of uncertainty, such as geopolitical or economic crises. Last year was certainly the case, which partly helps explain why the prices of both have soared.
These two also provide some benefit, although that may not be the main reason people want to invest in them. Gold is used in jewelry, but has value in industrial settings such as electronics manufacturing.
People undoubtedly own Bitcoin because they hope that its price will continue to rise. However, the web also allows anyone in the world to transfer value to anyone else quickly and cheaply. This is valuable to some people, especially those in developing countries.
At a high level, both Bitcoin and gold are rare. But there is a nuance that needs to be addressed. Bitcoin is absolutely finite because its supply cannot be changed.
Gold, on the other hand, has no set inflation rate. And its supply can be adjusted if demand increases for any reason. Then it might become economically feasible to mine gold in certain parts of the world. There is even interest in mining the oceans as well as asteroids in space.
This clearly proves that Bitcoin is rarer than the precious metal. Unless the majority nodes decide to change the halving schedule or increase the 21 million cap, which is highly unlikely as it would undermine the value of the entire network, that reality will not change. The inability to match supply with demand is one of the reasons why Bitcoin experiences greater volatility.
Bitcoin also possesses other properties that make it superior to gold. To be fair, gold has been appreciated for thousands of years, so it wins in the age category. Bitcoin has only been around for 16 years.
