Alina Khay

Alina Khay

Bitcoin vs Gold: Can Digital Scarcity Replace Physical Wealth?

You often hear Bitcoin called "digital gold." But can Bitcoin truly replace gold as a store of value and a hedge against inflation?

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Alina Khay
Apr 27, 2025
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Let's walk through the facts.

For an asset to be a real store of value, it must meet three key criteria:

  1. It must maintain purchasing power over long periods.

  2. It must be durable and easy to transport.

  3. It must have some form of inherent value—through history, government backing, or economic use.

Gold

Gold’s supply is limited and stable. This scarcity has helped it maintain purchasing power for millennia. Gold doesn't rust or degrade. It’s easily recognizable, culturally revered, and universally accepted as valuable—qualities that make it durable and portable.

Gold’s value extends beyond ornamentation. It’s used in technology, dentistry, and aerospace. These industrial applications anchor its worth even when investor sentiment fluctuates.

During times of political turmoil, investors turn to gold. History shows gold protecting wealth from currency collapses, wars, and hyperinflation. Gold-backed ETFs make it even easier today to buy, sell, and store gold without physically holding it.

Gold also pl…

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