Bitcoin’s Potential as Digital Gold: Academic Insights on Its Role Compared to Gold

Key Points

1. Bitcoin's finite supply of 21 million coins and decentralized nature position it as 'digital gold', contrasting with inflatable fiat currencies.

2. Academic studies show Bitcoin's price behavior diverges from traditional safe-haven assets like gold, exhibiting high volatility and unstable correlations.

3. Bitcoin's price fluctuated significantly in 2025, ranging between approximately $76,000 and $111,000, unlike gold's steady performance.

4. Research indicates Bitcoin's market behavior evolves with maturity, decoupling from equities during financial crises, but its high volatility remains a barrier to replacing gold as a store of value.

5. Institutional adoption, such as Bitcoin ETFs, influences market dynamics, but Bitcoin's role as an inflation hedge remains ambiguous compared to gold.