Bitcoin Can Compete With Gold As A Hedge Against Inflation In The Next 10 Years

Bitcoin could challenge gold as an inflation hedge in the coming decade, according to Blockstream CEO Adam Back. Speaking at Blockchain Week Paris 2025, Back pointed out that rising inflation and increasing adoption of cryptocurrency are the main drivers behind Bitcoin's future appeal. He compares the potential of Bitcoin to gold, noting that while both are scarce assets, Bitcoin is also undergoing an adoption curve. This makes it an attractive alternative for investors seeking a store of value. Global inflation has risen, particularly in the United States and Europe, partly due to increased money supply. Major currencies like the US dollar and euro have seen their supply increase by more than 50% over the past five years. As the value of fiat currencies declines, hard assets like Bitcoin are becoming more attractive. Predicted inflation could average between 10% and 15% annually over the next decade, making traditional investments such as stocks or real estate less likely to yield comparable returns. In addition to concerns about inflation, geopolitical instability could further enhance the appeal of Bitcoin. Back believes that Bitcoin could ultimately capture market share from gold, especially as a hedge against geopolitical risk. He emphasizes that although the value of Bitcoin is volatile, its long-term scarcity and growing recognition of its potential as a store of value will position it well for future adoption. Data from the University of Michigan's consumer survey shows that inflation expectations are rising, with consumers predicting 5% inflation over the next year and 4.1% over the next five years. This increase in inflation expectations may further drive interest in Bitcoin as a safer investment during uncertain economic times. Another factor driving the adoption of Bitcoin is the regulatory changes in the United States. The approval of spot Bitcoin exchange-traded funds (ETF) and a more favorable stance towards cryptocurrencies under the Trump administration has boosted the market. Back points out that the removal of regulatory barriers, such as "Operation Chokepoint 2.0", which had previously hindered the development of cryptocurrencies, has opened the door for broader adoption of Bitcoin. Back also notes that individual investors should lead the adoption of Bitcoin ahead of governments. He expressed concern that once governments start buying Bitcoin, this could create competition among nations to control the asset. In his view, private investors are in a better position to purchase Bitcoin first, allowing them to benefit before governments intervene. Despite some price volatility, the potential of Bitcoin as a hedge against inflation and the increasing adoption suggest that this coin could play an important role in the global financial landscape in the coming years. ⚠️IMPORTANT! If you like this topic, don't forget: • Follow me @blogtienso for more interesting content! • Like, share and leave a comment 💖 and don't forget DYOR! #Write2Earn #Write&Earn $BTC {spot}(BTCUSDT)