Bitcoin News Today: Bitcoin's Digital Edge Challenges Gold's Centuries-Old Inflation Hedge Role

Anthony Pompliano has reignited the debate over Bitcoin's dominance over traditional assets, claiming the cryptocurrency has rendered gold a "disastrous investment" since 2020. Despite gold hitting record highs this year, Bitcoin's explosive growth-surpassing 1,000% in five years-has reshaped the narrative for investors seeking inflation hedgesAnthony Pompliano Says Bitcoin's Made Gold A 'Disastrous Investment'…^[3]. The SPDR Gold Trust (GLD) has climbed 38% year-to-date in 2025, but Bitcoin's 23% gain pales next to its historic outperformance against the yellow metalGLD vs BTC: Performance Through the Lens of Money Supply^[1].

The contrast is stark when analyzing Bitcoin and gold through the lens of U.S. money supply (M2). While gold remains below its 2011 peak relative to M2, Bitcoin has repeatedly set new highs against the metric, underscoring its role as a "new form of money" in an era of rapid monetary expansionGLD vs BTC: Performance Through the Lens of Money Supply^[1]. Pompliano highlighted that gold has lost 84% of its purchasing power in Bitcoin terms since 2020, with one Bitcoin now buying 16 times more gold than five years agoAnthony Pompliano Says Bitcoin's Made Gold A 'Disastrous Investment'…^[3]. This aligns with Michael Saylor's assertion that Bitcoin has become the "hurdle rate" for all assets, setting a benchmark that traditional stores of value must clear to justify inclusion in portfoliosAnthony Pompliano Says Bitcoin's Made Gold A 'Disastrous Investment'…^[3].

Gold's recent rally, driven by central bank demand and inflation fears, masks a longer-term struggle against Bitcoin's velocity. Central banks added over 1,000 tonnes of gold annually since 2022, fueled by de-dollarization efforts and geopolitical tensionsComparing Bitcoin and Gold^[10]. Yet Bitcoin's 21 million supply cap and programmable scarcity give it a structural edge over gold, which faces exponential supply growth due to mining advancementsGold vs Bitcoin | Store of Value Analysis and Historical…^[8]. "Bitcoin's monetary policy is coded into its protocol, ensuring predictable scarcity," noted one analysis, contrasting with gold's geological and economic constraintsGold vs Bitcoin | Store of Value Analysis and Historical…^[8].

The diverging roles of the two assets are further highlighted by their market behavior. Gold, long a stable hedge, has maintained low volatility (annualized 15.5%) compared to Bitcoin's 52.2% in Q1 2025Comparing Bitcoin and Gold^[10]. However, Bitcoin's volatility has been declining as the market matures, narrowing the gap with gold to a 3.6x ratioComparing Bitcoin and Gold^[10]. Meanwhile, the 30-day correlation between Bitcoin and gold turned negative (-0.53) in 2025, signaling a shift in investor positioningBitcoin-Gold Correlation Turns Negative: What It Means for BTC…^[5]. When uncertainty rises, gold attracts safe-haven flows while Bitcoin faces selling pressure, reflecting its growing identity as a "risk-on" assetBitcoin-Gold Correlation Turns Negative: What It Means for BTC…^[5].

Historical data reinforces Bitcoin's outperformance. Over the past decade, it led gold in 9 of 12 years, including 157% gains in 2023 versus gold's 15%Better Buy: Bitcoin vs. Gold - The Motley Fool^[4]. While gold's 50% rise in 2025 has temporarily outpaced Bitcoin's 30%, experts caution that the trend is unlikely to persist. "Bitcoin's compounding velocity and digital infrastructure position it as a superior store of value long-term," said analysts at CertuityGold vs Bitcoin | Store of Value Analysis and Historical…^[8]. JPMorgan even projected Bitcoin could reach $165,000 in 2025 if it continues to catch up to gold's valuationBetter Buy: Bitcoin vs. Gold - The Motley Fool^[4].

The debate extends beyond performance. Critics warn that equating Bitcoin to gold risks repeating the 2008 mortgage-backed securities crisis, as both assets mask systemic risks behind analogiesShould We Compare Bitcoin to Gold? Lessons From…^[6]. Unlike gold, Bitcoin lacks physical utility and faces regulatory uncertainty, yet its adoption by institutions-including pension funds and ETFs-signals growing acceptanceShould We Compare Bitcoin to Gold? Lessons From…^[6]. For now, the coexistence of Bitcoin and gold in portfolios offers diversification benefits, balancing Bitcoin's high-risk, high-reward profile with gold's stabilityGold vs Bitcoin | Store of Value Analysis and Historical…^[8].

As the "debasement trade" gains traction amid fiat currency erosion, investors face a pivotal choice: bet on Bitcoin's digital revolution or gold's time-tested resilience. With Bitcoin's next major halving event looming and central banks continuing to stockpile gold, the clash of old and new money may define the next chapter of capital preservation.