Experts Question Bitcoin’s Role as ‘Digital Gold’

Some see cryptocurrency as a replacement for the dollar as a global reserve currency.

Over the past five years, gold has outperformed Bitcoin in terms of returns, raising questions about the cryptocurrency’s narrative as a digital version of the precious metal, according to DL News.

On Friday, the price of gold plummeted sharply from its previously reached all-time high. Bitcoin reacted with a relatively modest decline, yet over the past year, its value has dropped by about 20%.

“Bitcoin has never been a reliable haven; it is much more volatile than gold and subject to multiple double-digit declines,” said Nansen analyst Jake Kennis to the publication.

Proponents of the first cryptocurrency often position it as a digital store of value akin to precious metal, citing its limited supply. Indeed, over the past five years, Bitcoin’s price in dollars has increased by 150%.

During certain periods, the cryptocurrency’s prices moved in tandem with gold, such as during the 2023 banking crisis in the US. However, for the most part, Bitcoin’s dynamics correlate with other volatile assets, especially tech stocks.

“In certain scenarios, it exhibits haven characteristics, but in essence, it remains a risky asset, not ‘digital gold’,” Kennis believes.

Senior Researcher at HashKey Group Tim Sun highlighted another factor related to liquidity. According to him, the problem with the “digital gold” concept lies in the different pricing logic.

Investors in precious metals focus on macroeconomic imbalances and sovereign credit risks. Against this backdrop, Bitcoin remains sensitive to high-frequency trading and leverage use. Those hedging against global economic risks do not focus on the digital asset, Sun added.

It was precisely leveraged trades that hit Bitcoin in October, when shortly after reaching a high of $126,080, a wave of record $19 billion liquidations led to a sharp price drop. Since then, the cryptocurrency has struggled to regain its position, mostly trading below $100,000.

In recent months, some experts, such as former BitMex CEO Arthur Hayes, have promoted Bitcoin investments as a “devaluation trade”—a hedge against fiat currency depreciation. However, in January, gold and silver surged amid a weakening dollar, while the cryptocurrency significantly lagged behind them in performance.

Next, a Global Reserve Currency Role?

In January, Canadian billionaire Frank Giustra reiterated his criticism of the Bitcoin community for aggressively promoting the digital currency in a cult-like manner.

He noted that active proponents regularly changed the narrative based on market conditions. The entrepreneur outlined the main milestones of the coin’s “identity crisis”:

• means of payment according to the original vision of Satoshi Nakamoto: the idea failed due to rising fees and low speed;
• inflation hedge: during the price surge in 2022, the asset’s value fell from $69,000 to $16,000;
• digital gold: this thesis has been disproven by the current market situation.

“Today is a perfect example of why Bitcoin is not gold. Amid uncertainty around Greenland, the metal surged, while the cryptocurrency fell by the same percentage. One asset is a ‘safe haven,’ the other a risky instrument,” Giustra commented.

The potential next narrative for Bitcoin was outlined in January by Binance founder Changpeng Zhao. He stated that the digital asset would displace the dollar as the global reserve currency.

HUGE: Binance founder CZ says, “Bitcoin will become the global reserve currency.” pic.twitter.com/GlhitPnfgt

— Crypto Rover (@cryptorover) January 26, 2026

Simultaneously, journalist-podcaster Tucker Carlson, during an interview with Euro Pacific Asset Management President and well-known cryptocurrency critic Peter Schiff, also suggested such a development.

Last year, Coinbase CEO Brian Armstrong stated that Bitcoin would inevitably globally replace the dollar if the US does not address its national debt problem.

This idea was also voiced outside the crypto industry in a letter to shareholders in March by BlackRock CEO Larry Fink. He warned that the uncontrolled US debt and growing budget deficit could undermine the dominance of the national currency worldwide.

Earlier, ARK Invest founder and CEO Cathie Wood explained Bitcoin’s advantages over gold due to the cryptocurrency’s limited issuance. Meanwhile, the community is increasingly discussing the potential threat to the digital asset from quantum computing.