Bitcoin May Take Market Share from Gold as Inflation Hedge
Blockstream CEO Adam Back believes Bitcoin could start to replace gold as a preferred asset for hedging against inflation and geopolitical risks over the next decade.
Back explained that rising inflation and monetary instability across the globe will likely drive broader Bitcoin adoption. Despite Bitcoin’s recent 30% correction from its all-time high of $109,000, he pointed out that Bitcoin shares many of the same qualities as gold, particularly its scarcity.
Back emphasized that Bitcoin, much like gold, is a scarce asset. However, he noted that Bitcoin is currently in the midst of an adoption curve, which could see it start competing with gold for the role of a store of value. He highlighted the role of inflation, with currencies like the US dollar and the euro increasing their supplies by more than 50% over the past five years, further driving demand for Bitcoin as a hedge.
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Back pointed out that the continued inflation will likely push the prices of physical assets, such as housing, to rise in the long term. In contrast, Bitcoin offers an investment return that could outperform traditional assets like stocks or real estate. He suggested that over time, Bitcoin could start to take on some of gold’s use cases, especially as a geopolitical hedge.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a "detective-like" mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
