Can Bitcoin's market value surpass gold? Is it reasonable for Bitcoin's market value to surpass gold?

Bitcoin: The Future of Digital Gold? Can it exceed the gold market value?

Bitcoin showed an amazing market performance in 2024, exceeding US$100,000 in November and reaching a historical high of US$108,200 in December, with a market value exceeding US$2 trillion. In sharp contrast, the gold market's sluggish performance and continued decline. This has triggered heated discussions in the market about whether Bitcoin’s future market value can surpass gold. Based on current data analysis, most investors are optimistic about Bitcoin's potential to surpass gold. This article will explore this topic in depth.

What is the possibility of Bitcoin’s market value exceeding gold?

Mike Novogratz, founder and CEO of Galaxy Digital, predicts that Bitcoin’s market value will surpass gold in the next 5 to 8 years. He believes that Bitcoin is not only a digital asset, but also an innovative force that challenges the traditional financial system.

Experts analyzed that Bitcoin is still the leader in the cryptocurrency market, with a market value of more than half of the cryptocurrency market and is expected to further consolidate its dominance in 2025. Galaxy Research's 2025 forecast report shows that Bitcoin price is expected to exceed $150,000 in the first half of the year and $185,000 in the fourth quarter, thanks to widespread adoption at the institutional, corporate and national levels, by which time its market value will reach 20% of the gold market value.

In 2024, global central banks maintained loose monetary policy due to lower-than-expected rate hikes in the Federal Reserve, coupled with increased holdings of gold by central banks in many countries and geopolitical tensions, gold prices performed strongly. Spot gold hit $2,790 at the end of October 2024, up more than 26% for the whole year, setting its best performance since 2010; silver prices also rose by more than 21%.

Is Bitcoin’s market value more reasonable than gold?

It is not unreasonable that Bitcoin market value exceeds gold. Jordan Fish, a well-known cryptocurrency trader, believes that it is more reasonable for Bitcoin to reach 5 to 10 times that of gold, and calls it "interstellar digital gold." He pointed out that Bitcoin's limited supply and decentralized nature make it have anti-inflation properties similar to gold, and as humans move towards multi-planet civilization, gold may be replaced by more advantageous assets.

The total amount of Bitcoin is limited to 21 million. This scarcity gives it anti-inflation attributes, while the supply of gold is relatively stable and cannot be restricted through technical means.

Bitcoin is based on blockchain technology, and its decentralized nature makes it not controlled by a single government or institution, which is very attractive to investors who are worried about monetary policy and inflation. Although gold has a history of thousands of years, the market is relatively concentrated and its transparency is limited.

Bitcoin is a global digital asset that can be easily traded across borders without being restricted by national monetary policies. Its global liquidity makes it more attractive to investors and merchants, especially in countries where fiat currency depreciation or strict capital controls.

Bitcoin has significant technological advantages, and investors can easily trade through mobile phones or computers, while the physical storage, transportation and transactions of gold are relatively complex. In recent years, especially the younger generation of investors, have favored digital assets over traditional safe-haven assets, such as gold.

Cryptocurrency analyst Anthony Scaramucci also predicts that Bitcoin’s market value will surpass gold. He believes that with technological advancements and space exploration advances, investors may be more inclined to hold digital assets such as Bitcoin than physical gold. However, the risks in the Bitcoin market still exist, with large short-term volatility, and investors need to formulate reasonable investment plans based on their own risk tolerance.

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