Bitcoin Is a Better Buy Than Gold in 2025 and Beyond: Here's Why

01/11/2025 18:56
Bitcoin Is a Better Buy Than Gold in 2025 and Beyond: Here's Why

Both Bitcoin and gold are viewed as stores of value. There will only ever be 21 million Bitcoin coins in circulation thanks to its halving schedule and hard supply cap that's etched into its code. Investors also classify Bitcoin and gold as assets desirable during times of uncertainty, such as geopolitical or economic crises.

The stock market had a wonderful performance last year. That bullish fever trickled to other assets, like gold. The precious metal saw its price rise 26% in 2024.

But that gain doesn't hold a candle to Bitcoin (CRYPTO: BTC), which soared 119% last year. If you have extra cash to put to work, you might be considering where to park it.

Here's why the world's top cryptocurrency is a better buy than gold in 2025 and beyond.

Both Bitcoin and gold are viewed as stores of value. It makes sense why: These assets are scarce.

There will only ever be 21 million Bitcoin coins in circulation thanks to its halving schedule and hard supply cap that's etched into its code. And there is only a certain amount of gold in the Earth's crust.

That store-of-value perspective explains why people often see these two assets together. Investors also classify Bitcoin and gold as assets desirable during times of uncertainty, such as geopolitical or economic crises. Last year certainly fit the bill, which partly helps explain why the prices of both soared.

These two also provide some utility, although this might not be the main reason people want to invest in them. Gold is used in jewelry, but it does have value in industrial settings like when making electronics.

People undoubtedly own Bitcoin because they hope its price continues climbing. However, the network also allows anyone in the world to transfer value to anyone else quickly and cheaply. That's valuable to some people, particularly those in developing nations.

At a high level, both Bitcoin and gold are scarce. But there's a nuance that needs to be addressed. Bitcoin is absolutely finite as its supply cannot be altered.

Gold, on the other hand, doesn't have a set inflation rate. And its supply can be adjusted if demand rockets higher for whatever reason. Then it could become economically feasible to mine gold in certain parts of the world. There's even interest in mining the oceans, as well as asteroids in outer space.

This obviously proves that Bitcoin is scarcer than the precious metal. Unless the majority of nodes decided to change the halving schedule or increase the 21 million cap, which is highly unlikely as it would undermine the value of the entire network, this reality won't change. The inability to match supply with demand is one reason why Bitcoin experiences more volatility.

Bitcoin also possesses other properties that make it superior to gold. To be fair, gold has been valued for thousands of years, so it wins in the age department. Bitcoin has only been around for 16 years.

But the top crypto is easier to store and transport. Bitcoin is more divisible, as each unit can be broken down to eight decimal places. And people can actually buy things with Bitcoin.

The other thing to think about is the changing economic landscape. The world is only going to become more digital. Logically, the younger demographic could be more inclined to store their wealth in Bitcoin, rather than gold.

Gold's gain last year is somewhat of an anomaly. In the past five years, its price has increased 71%. That seriously lags Bitcoin, whose price has catapulted 1,060% higher during the same period of time. Despite the latter's volatility, it has undoubtedly been a more successful investment.

Looking at 2025 and beyond, perhaps over the next five to 10 years, I firmly believe Bitcoin remains a significantly better investment opportunity. At the end of the day, the main goal when investing your hard-earned savings is to increase your purchasing power over time, outpacing inflation in the process.

Bitcoin has done an unbelievable job historically in this regard. Even as it currently trades 10% off its peak, I think it will continue boosting investors' purchasing power over the long term, especially when compared to gold.

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $363,307!*

  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $45,963!*

  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $471,880!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of January 6, 2025

Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

Bitcoin Is a Better Buy Than Gold in 2025 and Beyond: Here's Why was originally published by The Motley Fool

Read more --->