Bitcoin vs Gold: Which Asset Offers Better Protection Against Inflation in 2025?

On April 25, 2025, Bitcoin surged past $90K, signaling strong investors’ confidence in Bitcoin investment. But, as the inflation persists, the U.S dollar weakening, and trade wars escalates, many traders are viewing Bitcoin and Gold as safe havens. Some investors and traders are debating which of these two assets offers the best hedge and long-term security in 2025. 

Bitcoin Vs Gold

Amidst all the uncertainties, Gold is considered the safest haven of all safe havens. Because it is tangible, historically reliable, and globally recognized. For centuries, investors have been turning around gold investment when the market is uncertain, as it retains its value even when fiat currencies falter. 

This doesn’t mean Bitcoin, the digital Gold in the crypto landscape, is not the safest investment option. Despite its volatility, Bitcoin investment has gained legitimacy over decades. With institutional adoption on the rise, Bitcoin is retaining its reputation as a long-term store of value. 

BlackRock Reports September 2024

Back in September 2024, BlackRock, an American multinational investment company, published a short 10-page report on Bitcoin’s unique diversification properties. The report examined Bitcoin as a scarce, decentralized, non-sovereign global asset and concluded that it does not fit with the traditional framework of safe and risky assets. 

Since Bitcoin is highly volatile, many consider it a risky investment. But, with certain key characteristics, Bitcoin investment outshines as a safe haven like a Gold investment. 

Bitcoin – The Safe Haven

As per the BlackRock report, it is clear that, like Gold investment, Bitcoin is considered a safe haven while economic uncertainty and geopolitical turmoil persist in the marketplace. To understand it, BlackRock reviewed six events that have shaped the Bitcoin price in the financial landscape. That is, during events like the COVID outbreak and the Russia-Ukraine war in 2022, both Gold and Bitcoin reacted enormously. Hence, they have a clear view that during geopolitical events, these two assets are reacting and viewed as a hedge by investors.

Bitcoin and Gold Surge Amid Economic Uncertainty

So far, both assets have shown contrasting performance in the global market. Gold has maintained a steady upward trend, hovering around $3500 per ounce, marking a new all-time high. On the other hand, Bitcoin also made strides. 

Chart 1, published on newhedge, on April 23, 2025

As of April 25, 2025, Bitcoin is trading above $90,000, which is up more than 20% year to date. Because investment giants like ARK Invest and Fidelity digital assets are increasing their BTC allocations for long-term gains. 

What Chart Says?

As illustrated in Chart 2, iShares Bitcoin Trust from BlackRocks shows that Bitcoin has outperformed gold and its ETF has increased by 116%.

Chart 2, by The Motley Fool/YCharts, published on April 23, 2025

On the other hand, iShares Gold Trust from BlackRocks shows that Gold’s ETF has risen by 68% since January 2024. 

Bitcoin Investment Vs Gold Investment: Which is Better?

Are you wondering about Bitcoin vs Gold, which investment will be a strategic move? It depends on individual goals and risk tolerance. Those who seek safety, stability, and long-term preservation of wealth usually go for gold investment. Investors who look for high returns turn their interest towards long-term potential opportunities like Bitcoin investment. Despite its volatility, this digital gold offers compelling opportunities for traders and investors. But financial advisors are suggesting that investors go with a diversified approach by allocating the portfolio to both gold and Bitcoin. As the global finance landscape evolves, both assets offer the best hedge.