Bitcoin vs. gold: Do you need one, the other, or both?

Both Bitcoin and gold exist, at least partly, because people want something that holds value outside the traditional financial system. But in 2026, they told very different stories. Gold surged roughly 65%, hitting all-time highs above $4,500 per ounce. Bitcoin reached a new all-time high of $126,000, then pulled back as macro conditions tightened.

That divergence has brought a familiar question back to the surface: which one actually works as a store of value?

The honest answer is that they work differently — and understanding how is more useful than picking a winner.

What does "store of value" actually mean?

A store of value is something that holds its purchasing power over time. It doesn't erode when inflation rises. It doesn't disappear when a company fails.

Gold has held that role for thousands of years. It's scarce, durable, and accepted globally. Bitcoin makes a similar argument — fixed supply, no central issuer, borderless — but it's been around for just 15 years.

The comparison makes sense on paper. Whether it holds up in practice depends on the timeframe and the macro environment you're looking at.

The case for gold

Gold's 2025 performance wasn't an accident. It was driven by conditions that have historically favored gold: geopolitical tensions, rising government debt, central bank accumulation, and a weakening dollar.

Central banks globally surpassed 40,000 tonnes of gold reserves in the third quarter of 2025 — the highest level in at least 75 years. That goes beyond a speculative demand. That's institutional conviction.

Gold's volatility is also significantly lower than Bitcoin's. Where Bitcoin's realized volatility hovered around 50% in 2025, gold moved far more steadily. For someone whose priority is capital preservation and not growth, that stability has real value.

The trade-off is the ceiling. Over the past decade, gold returned roughly 335%. Bitcoin returned over 22,000%. 

The case for Bitcoin

Bitcoin's 2025 underperformance was real. But the context matters.

Bitcoin traded as a risk asset — moving with tech stocks and liquidity conditions — rather than as a defensive hedge. When macro stress hit, and investors moved to safety, they chose gold. 

That tells you something important: Bitcoin hasn't fully earned the "digital gold" label yet. It's still in its institutional adolescence. But the structural argument for it is intact.

Its supply is fixed at 21 million coins. No government, central bank, or company can change that. Every four years, the amount of new Bitcoin entering circulation gets cut in half through the halving mechanism. That's a known, transparent scarcity schedule — something physical gold can't offer.

Over a five-year horizon, Bitcoin has outpaced gold substantially. Over a 10-year horizon, it's not close. The question here is whether the holder can absorb the volatility that comes with it.

• In 2024, Bitcoin rose by over 135% while gold rose by 35%.

• Over 10 years, Bitcoin is up more than 22,000% versus gold's 335%.

• Bitcoin's market cap has grown from near zero to over $1.7 trillion in 15 years.

Short-term underperformance in a specific macro regime doesn't invalidate a long-term thesis.

Where they differ: a practical comparison

The portability and divisibility gap is underappreciated. Moving $1 million in gold requires physical logistics. Moving $1 million in Bitcoin takes minutes, at any hour.

Why the "either/or" framing misses the point

Gold and Bitcoin aren't competing for the same job.

Gold is the proven, low-volatility anchor — the asset that performs when everything else is under pressure. It's been tested across world wars, currency crises, and market crashes. Central banks hold it for a reason.

Bitcoin is the high-conviction, long-horizon bet — the asset that benefits when liquidity expands, institutional adoption deepens, and more capital decides that digital scarcity deserves a place in a portfolio.

Holding both isn't contradictory. It reflects the reality that different assets serve different purposes across different time horizons.

Many investors today treat gold as their defensive allocation and Bitcoin as their asymmetric growth position. The weighting depends entirely on individual goals and risk tolerance.

How your holdings can work harder

One distinction that often gets overlooked in the gold vs. Bitcoin debate is what you can do with each asset beyond simply holding it.

Physical gold sits in a vault. It doesn't earn anything. It doesn't provide liquidity without selling or engaging a specialist broker.

Bitcoin and digital gold tokens — like PAX Gold (PAXG) and Tether Gold (XAUT), which are physical gold represented on-chain — can work differently.

With Nexo, you can:

• Earn interest on Bitcoin, PAXG, and XAUT holdings through Flexible and Fixed-term Savings.

• Borrow against your holdings via the Nexo Credit Line, accessing liquidity without selling your assets.

• Buy and exchange between Bitcoin and tokenized gold directly on the platform.

This means the choice between Bitcoin and gold doesn't have to be binary, and whichever you hold, it doesn't have to sit idle.

Note: Rates and available assets vary depending on your jurisdiction.

Frequently asked questions

1. Is Bitcoin better than gold as a store of value?

It depends on the timeframe and macro environment. Over short periods of stress, gold has historically outperformed. Over longer horizons, Bitcoin has delivered significantly higher returns. Both behave differently across market cycles. They work differently — and understanding how is more useful than picking a winner.

2. Why did gold outperform Bitcoin in 2025?

Gold thrived on the specific macro conditions of 2025 — geopolitical tension, central bank buying, and a weakening dollar. Bitcoin, which tends to behave more like a risk asset, sold off alongside equities during periods of stress. The divergence reflects their different market behaviors, not a fundamental change in either asset's thesis.

3. Can you hold both Bitcoin and gold?

Yes, and many investors do. Gold provides stability and a proven track record as a defensive asset. Bitcoin offers higher growth potential over longer time frames. Holding both gives exposure to different macro regimes rather than betting entirely on one.

4. What is digital gold?

Digital gold refers to tokens like PAX Gold (PAXG) and Tether Gold (XAUT) — cryptocurrencies backed one-to-one by physical gold stored in vaults. They combine gold's price stability with the portability and programmability of digital assets.

5. Does Bitcoin have a fixed supply like gold?

Bitcoin has a hard cap of 21 million coins — a known, unchangeable limit written into its code. Gold's supply is finite but unknown, as new deposits are still discovered and mined. Bitcoin's supply schedule is more transparent and predictable.

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