Crypto has often been referred to as the “new gold,” but the recent turmoil in the market has shown that the true safe investment remains physical gold. Let’s understand why gold is still the most reliable means of protection against inflation and economic instability - and why Bitcoin ($BTC ) has failed this test.
💰 Gold vs Crypto: Who is the real hedge?
When cryptocurrencies first emerged, supporters presented them as an alternative to fiat currency (government currency). Fiat currency is under the control of the government and central banks and its value is not based on any physical asset like gold. This is why when governments print excessive currency, its value declines — and investors flock to gold.
Gold has increased by nearly 44% in 2025, while Bitcoin's growth has been 13% - which is average performance.
📉 Why did Bitcoin fail in market tension?
Between March and April, when the U.S. imposed heavy tariffs on imports and global markets crashed, gold increased by 15% while Bitcoin fell by 1%.
This shows that in times of crisis, gold has played its hedging role, while Bitcoin has not.
⚙️ Two main reasons: Gold is safe, Bitcoin is not.
1. Physical vs Digital Value:
Gold is a physical asset that maintains its value in every circumstance.
Bitcoin is digital — it requires internet and a broker to access. There is no guarantee of access in times of crisis.
2. No supply limit:
Although the total supply of Bitcoin is fixed, new cryptocurrencies continue to emerge.
If a new, better crypto emerges in the future, investors may abandon Bitcoin.
Thus, the value of Bitcoin is not permanent.
🔍 Conclusion:
This does not mean that Bitcoin is a bad investment - but it is not a 'safe haven.'
To avoid inflation and uncertainty, gold remains the strongest option.
Disclaimer:
This article is for educational purposes only. Please consult your financial advisor before investing.
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