Can Bitcoin Replace Gold As A Long-Term Store Of Value?

For years, Bitcoin has often been referred to as “digital gold” due to its scarcity, decentralization, and potential as a store of value. But can Bitcoin truly replace gold—a historically proven safe-haven asset recognized for centuries—or is the comparison overblown?

Based on the latest academic research, this article explores whether BTC can serve as a true safe-haven asset, and what key factors it still lacks to fulfill that role.

Bitcoin vs Gold: Which Is the True Store of Value?

1. Bitcoin vs. Gold: Scarcity Alone Is Not Enough

A study by Baur et al. (2018) shows that while Bitcoin shares gold’s scarcity—limited to 21 million coins—its behavior differs significantly from traditional safe-haven assets.

•  - Gold retains value during crises

•  - Bitcoin reacts more to market sentiment and news cycles

Conclusion: Bitcoin appeals more to speculative investors, whereas gold remains a defensive asset for long-term capital preservation.

2. Volatility: Bitcoin’s Biggest Weakness

2025 data shows:

•  - BTC price fluctuated between $76,000 and $111,000

•  - Meanwhile, gold moved within a much narrower range

Research by Klein et al. (2018) confirms that Bitcoin is significantly more volatile than gold, and its correlations with traditional assets are unstable—making it unsuitable for risk-averse portfolios.

3. Inflation Hedge? Not Quite Yet

Gold has historically served as a hedge during inflation, wars, and currency crises. But what about Bitcoin?

•  - Dyhrberg (2016) finds that Bitcoin shows gold-like behavior under certain conditions, but lacks the historical consistency to be a reliable inflation hedge.

•  - Bouri et al. (2020) conclude that BTC hedges well in some periods, but is heavily influenced by investor sentiment and FOMO, unlike gold.

4. Institutional Adoption: A Path To Stability?

The growing presence of institutions such as:

•  - Bitcoin ETFs

•  - Public companies and banks holding BTC

This has led scholars like Corbet et al. (2019) to question whether Bitcoin is evolving to become more gold-like.

However, studies show:

•  - BTC still correlates with equities during market turmoil

•  - Gold tends to move inversely to risk assets, offering better protection

Bitcoin needs more time and consistent performance across crises before it can rival gold.

5. Conclusion: Bitcoin Is The Future—But Not Gold Just Yet

Bitcoin holds immense potential as a store of value due to its scarcity, decentralization, and global community support. However, to fully replace gold, it must overcome three major hurdles:

•  - High volatility

•  - Unpredictable crisis performance

•  - Limited historical track record