Bitcoin proponents are warning holders not to ditch BTC to buy gold, even if the metal climbs above $4,000 an ounce. According to market researcher Matthew Kratter, Bitcoin’s characteristics – such as ease of transfer, clear supply rules and divisibility – make it a stronger long-term store of value than gold.
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Concerns about the gold supply
Kratter points to a steady increase in gold supply and estimates that it has risen 1 to 2% annually for decades. At that rate, supply would double approximately every 47 years.
That steady growth, he says, could be boosted by major new discoveries — on land or, he adds, possibly off Earth — that could flood markets and depress prices after a surge.
Reports have shown that the sudden influx of bullion has reshaped economies before, citing how the arrival of gold from the New World to Europe in the 16th century contributed to major inflation and the collapse of Spanish power.
The practical limits of gold
The physical nature of gold creates boundaries in a world where value moves through networks. Moving large amounts of money is expensive and risky. Kratter has argued that tokenized gold – digital tokens that purport to represent physical reserves – introduces counterparty risk: issuers could mint more tokens than they own, refuse redemption, or see reserves seized.
Based on reports from market observers, these concerns have prompted some buyers to purchase assets that can be more easily moved or verified over the Internet.
Industrial metals are catching up
Reports have shown that industrial metals also posted huge gains in 2025, a year in which copper, lithium, aluminum and steel performed as strongly as gold in many markets.
Demand from AI data centers, electric vehicles, and clean energy projects has driven up consumption. Supply problems – such as mine disruptions and tight inventories – simultaneously caused tight markets. That mix of stronger demand and shakier supply has helped push prices higher across the board.
Tariffs and trade storms
Trade policy has created even more tension. The 50% announcements by US President Donald Trump rates Demand for certain copper, steel and aluminum products prompted traders and buyers to rush shipments and build up inventories.
BTCUSD trading at $87,915 on the 24-hour chart: TradingView
This front-loading behavior briefly depleted available stocks and caused prices to fluctuate. Traders told reporters that even short-term tariff threats could lead to big changes as companies try to avoid future costs by buying early.
Where Bitcoin Fits
The debate between gold and Bitcoin is still active. Bitcoin proponents emphasize its scarcity – the fixed BTC supply rule – and the speed of transfer. Gold proponents argue that gold has been used as money for centuries and that Bitcoin’s volatility remains a hurdle for some investors.
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The rally in industrial metals adds a third thread: these materials are linked to real economic activity, not just flows entering safe havens.
Analysts say investors need to weigh several risks. Gold can act as a hedge in turbulent times, but steady mine production and big discoveries could change its long-term calculations. Industrial metals may continue to rise if demand for energy and technology continues.
And Bitcoin’s supporters argue that its digital properties make it better suited to a world that values fast, verifiable transfers.
Featured image of Gemini, chart from TradingView