Bitcoin as a potential hedge against inflation: An alternative to gold?

Bitcoin could become a serious competitor to gold as an inflation hedge in the next decade. This assessment comes from Adam Back, CEO of Blockstream, who spoke at Paris Blockchain Week 2025.

Bitcoin is increasingly viewed as a potential inflation hedge, similar to gold. Adam Back, CEO of Blockstream, expressed his view at Paris Blockchain Week 2025 that Bitcoin could challenge gold as the preferred inflation hedge within the next decade. This assessment is based on the growing adoption of cryptocurrencies and rising inflation, particularly in the US and Europe.

While gold is traditionally considered a safe haven in times of economic uncertainty, Bitcoin’s limited availability and growing adoption offer an attractive alternative. The money supply of major currencies such as the US dollar and the euro has increased by over 50% in the last five years, reducing the value of fiat currencies and making hard assets such as Bitcoin more attractive.

Back predicts that inflation could average between 10% and 15% per year over the next ten years. This would make it difficult for traditional investments such as stocks or real estate to generate comparable returns. In addition to inflation concerns, geopolitical instability could further increase interest in Bitcoin as a hedge.

Another factor driving Bitcoin adoption is regulatory changes in the US. The approval of Bitcoin spot ETFs and a more positive attitude toward cryptocurrencies have boosted the market. Back emphasizes that the removal of regulatory hurdles that have hindered the growth of cryptocurrencies has paved the way for broader Bitcoin adoption.

Back warns, however, that the adoption of Bitcoin by governments could lead to a race for control of the asset. He sees private investors in a better position to acquire Bitcoin before governments and benefit from its appreciation. Despite some price fluctuations, Bitcoin’s potential as an inflation hedge and its growing adoption suggest that it could play an important role in the global financial system in the coming years.