Supporters of Bitcoin are advising holders against hastily exchanging BTC for gold, even as the price of gold surpasses $4,000 per ounce. Market educator Matthew Kratter emphasizes that Bitcoin’s advantages—such as ease of transfer, defined supply rules, and divisibility—render it a more robust long-term store of value than gold.
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Concerns About Gold Supply
Kratter points to consistent increases in the supply of gold, estimating an annual rise of around 1% to 2% for decades. At this growth rate, supplies could approximately double every 47 years.
This steady increase, he notes, could be exacerbated by significant new discoveries—on land or potentially off Earth—which might flood markets and drive prices down after a spike.
Reports indicate that sudden surges of precious metals have historically transformed economies, referencing how the influx of gold from the New World into Europe during the 1500s led to significant inflation and the decline of Spain’s power.
The Practical Limitations of Gold
The tangible aspect of gold imposes limitations in a world that transmits value via networks. Moving large quantities is both costly and risky. Kratter has argued that tokenized gold—digital representations of physical reserves—returns the threat of counterparty risk: issuers might create more tokens than they actually possess, refuse redemption, or have reserves confiscated.
According to market observers, these issues are nudging some buyers toward assets that are easier to transfer or verify online.
Industrial Metals Gain Ground
Reports suggest that industrial metals also experienced substantial gains in 2025, with copper, lithium, aluminum, and steel performing as strongly as gold in various markets.
Increased demand from AI data centers, electric vehicles, and clean-energy initiatives has heightened consumption. Simultaneously, supply disruptions—such as mine closures and low inventories—have tightened markets. This combination of robust demand and constrained supply has contributed to rising prices across the sector.
Impact of Tariffs and Trading Surges
Trade policies have intensified the situation. The announcement of 50% tariffs on certain copper, steel, and aluminum products by US President Donald Trump led traders and buyers to hastily arrange shipments and stockpile resources.
BTCUSD trading at $87,915 on the 24-hour chart: TradingView
This pre-emptive buying temporarily depleted inventories and caused price fluctuations. Traders reported that even short-term tariff threats can result in substantial market movements as companies aim to avoid future expenses by purchasing in advance.
The Position of Bitcoin
The discussion regarding gold versus Bitcoin remains vibrant. Proponents of Bitcoin emphasize its scarcity—due to the fixed supply of BTC—and the speed of transactions. Meanwhile, supporters of gold argue that it has a historical precedent as a form of money and that Bitcoin’s volatility poses challenges for some investors.
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The surge in industrial metals introduces another dimension to the conversation: these materials are linked to tangible economic activities, not merely safe-haven flows.
Analysts advise investors to consider various risks. While gold can serve as a hedge in unstable times, consistent mine outputs and significant discoveries can alter its long-term value dynamics. Industrial metals may continue to rise if the demand from the energy and technology sectors remains strong.
Additionally, Bitcoin’s advocates argue that its digital nature makes it more suitable for a world that prioritizes swift, verifiable transactions.
Featured image from Gemini, chart from TradingView
