Bitcoin is a better buy than gold in 2025 and beyond: here’s why

The stock market had a wonderful performance last year. This bullish fever has spread to other assets, such as gold. The precious metal saw its price increase by 26% in 2024.

But this gain does not hold water Bitcoin (BTC -0.47%)which soared 119% last year. If you have extra money to spend on work, you may be wondering where to park it.

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

Similarities Between Bitcoin and Gold

Bitcoin and gold are considered stores of value. The reason is logical: these assets are rare.

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

This store of value perspective explains why people often see these two assets together. Investors also rank Bitcoin and gold as desirable assets during times of uncertainty, such as geopolitical or economic crises. Last year certainly did the trick, which is part of the reason why prices for both have skyrocketed.

Both of these also have some utility, although it may not be the main reason people want to invest in them. Gold is used in jewelry, but it has value in industrial settings, such as in electronics manufacturing.

People undoubtedly own Bitcoin because they hope its price will continue to rise. However, the network also allows anyone in the world to transfer value to anyone else quickly and inexpensively. This is valuable to some people, especially those in developing countries.

Bitcoin outperforms gold in key areas

At a high level, Bitcoin and gold are scarce. But there is a nuance that needs to be addressed. Bitcoin is absolutely limited because its supply cannot be changed.

Gold, on the other hand, does not have a fixed inflation rate. And its supply can be adjusted if demand increases for any reason. It could then become economically feasible to mine gold in certain regions of the world. There is even interest in mining the oceans, as well as asteroids in space.

This obviously proves that Bitcoin is rarer than the precious metal. Unless the majority of knots If we decided to change the halving schedule or increase the cap by 21 million, which is very unlikely because it would hurt the value of the entire network, this reality will not change. The inability to match supply with demand is one of the reasons Bitcoin experiences more volatility.

Bitcoin also has 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 category. Bitcoin has only been around for 16 years.

But the best crypto is easier to store and transport. Bitcoin is more divisible, because 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 will only become more digital. Logically, young people might be more inclined to store their wealth in Bitcoin rather than gold.

Increase in purchasing power

Gold’s rise last year was somewhat of an anomaly. Over the past five years, its price has increased by 71%. This seriously lags behind Bitcoin, whose price has soared 1,060% over the same period. Despite the volatility of the latter, it is undoubtedly a more successful investment.

Looking to 2025 and beyond, perhaps over the next five to ten years, I firmly believe that Bitcoin remains a much better investment opportunity. Ultimately, the main goal when investing your hard-earned savings is to increase your purchasing power over time, thereby outpacing inflation.

Bitcoin has historically done an incredible job in this regard. Even though it is currently trading 10% off its peak, I believe it will continue to boost investors’ purchasing power over the long term, especially relative to gold.

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