Bitcoin Outperforms Gold 80 Times Since 2016, Volatility Declines

Bitcoin is increasingly aligning with the fundamentals of a store of value, a designation that is earned through collective behavior, infrastructure maturation, and social consensus. This evolution is not static but dynamic, much like how gold became a store of value over centuries of trust, utility, and institutionalization. Similarly, tech stocks, once associated with unsustainable speculation, now account for nearly half of the S&P 500, the benchmark index for generational value. Both gold and tech stocks endured periods of misunderstanding and mockery but proved structurally relevant over time.

Bitcoin, by design, incorporates many store of value fundamentals, including scarcity, portability, and divisibility. However, some aspects, such as the ability to hold value across time and withstand crises, require time to prove. For instance, if priced in gold, the US dollar and Euro have lost around 66% of their value since 2016. In contrast, Bitcoin has outperformed gold by nearly 80 times over the same period, making fiat currencies appear even weaker. Bitcoin has shown solid resilience during turbulent periods, sometimes outperforming traditional assets. During Donald Trump’s tariff-related market turmoil, Bitcoin outperformed the S&P 500, Nasdaq 100, APAC and European equities, and later surpassed gold, recording a 13% monthly gain. Even after the COVID-19 outbreak, when Bitcoin lost over 30% in a single week, it managed to recover and began outperforming the broader market in less than two months.

The core criticism against Bitcoin as a store of value centers on its volatility. However, volatility is not fixed; it evolves with adoption and market integration. Gold was highly volatile during the 1970s and early 1980s as it re-monetized after the end of the Bretton Woods system. Similarly, Bitcoin has experienced volatility in its early stages while finding its place in the financial landscape. But that volatility is consistently declining. In 2024, it was noted that Bitcoin was less volatile than 33 stocks in the S&P 500, and its volatility has been steadily decreasing as the asset class matures and its market cap grows. In 2025, this trend continued, with lower volatility peaks being recorded. As a result, Bitcoin now offers more stability than explosive growth, with a CAGR aligning more closely with gold and other store of value assets.

Bitcoin’s growing institutional adoption and liquidity have been key drivers behind this shift. Over the past year, Bitcoin’s two-percent market depth on spot markets increased by 60%. Most of it came from US-based exchanges, which are increasingly focused on institutional clients. This also led to Bitcoin’s trading volume being more concentrated around US trading hours. Another factor is the increasing dominance of long-term holders, particularly with each new four-year halving cycle. These holders are generally indifferent to daily price movements and display relatively passive market behavior. This means that a store of value narrative surrounding Bitcoin is gradually pushing away the one focusing on short-term speculation.

Bitcoin is still widely perceived as a volatile, high-risk asset, and there are valid reasons for that. However, it would be careless to ignore its ongoing evolution toward becoming a legitimate store of value. No other asset is even attempting to secure this status, let alone getting as close. However, Bitcoin’s journey is far from over. Investors may want to periodically reassess their perspectives. Many views once used to define Bitcoin are becoming outdated. So instead of replaying the same old track, perhaps it’s time to take another look, with a long-term lens.