Bitcoin Challenges Gold as Inflation Hedge Amid Geopolitical Tensions and Market Volatility
April 9, 2025
Back concluded that this is a unique opportunity for individuals to invest in an asset that may soon become integral to the global economy.
Bitcoin is increasingly seen as a competitor to gold for hedging against inflation and geopolitical uncertainty, according to Blockstream CEO Adam Back.
Consumer inflation expectations are also rising, with predictions of 5% inflation over the next year and 4.1% over the next five years, likely increasing interest in Bitcoin as a safer investment.
In a significant move, President Trump signed an executive order on March 7, 2025, to establish a Bitcoin reserve using Bitcoin seized from criminal cases, marking a step toward integrating Bitcoin into the traditional financial system.
Rising inflation, particularly in the U.S. and Europe, has been driven by a significant increase in money supply, with major currencies like the US dollar and euro growing by over 50% in the past five years.
Back emphasized the importance of long-term investing in Bitcoin, suggesting that Trump's tariffs could ultimately increase costs for everyday people.
Back noted the significant volatility in both crypto and traditional markets, including a recent decoupling of Bitcoin from stock market trends, although Bitcoin eventually mirrored the stock market's decline.
He highlighted Bitcoin's resilience during geopolitical tensions, such as the U.S.–China trade war, where it recovered faster than traditional equities after market downturns.
He advocates for individual investors to lead Bitcoin adoption, as they may benefit before government involvement changes the market dynamics.
At the time of the article, Bitcoin was recovering from a recent dip, with trading starting at $78,478 and fluctuating around resistance levels between $74,567 and $81,200.
Current predictions suggest a potential for Bitcoin to stabilize around $76,000-$77,000 if buying pressure does not increase soon.
Addressing concerns about quantum computing, Back reassured investors that it does not currently pose a meaningful threat to Bitcoin's security and expressed confidence in the community's ability to innovate.
Summary based on 7 sources
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Sources

Yahoo Finance • Apr 9, 2025
Bitcoin Could Compete With Gold as Inflation Hedge Over the Next Decade, Says Blockstream CEO
Cointelegraph • Apr 8, 2025
Bitcoin may rival gold as inflation hedge over next decade — Adam Back
CryptoPotato • Apr 8, 2025
Adam Back Explains Who Should Buy Bitcoin Ahead of Governments: Paris Blockchain Week
CoinJournal • Apr 9, 2025
Inflation fears fuel Bitcoin's ascent: will it outshine gold?