There's a widespread narrative on social media that if your grandfather bought gold in 1492, you'd find your money today at the same level with no gain, and that Bitcoin is more valuable. This may attract you as a 'historical fact,' but the economic reality is entirely different. To unravel this issue, we must start by understanding the historical and technical context of each asset, the weight of the ounce, and the market structure changes over the centuries to the dynamics of Bitcoin's scarcity and shifts in monetary policies. This introduction will outline our roadmap: why a comparison of 533 years between gold and the dollar is not scientifically accurate, and how we can build investment strategies based on data and professional analysis.
Why comparing the price of gold from 1492 to 2025 is unrealistic
In 1492, there was no dollar currency at all, and people traded gold based on weight and purity according to each country.
Prices are not just rising; the economy is changing in production, technology, and social structures. If we only calculate the money that will come out after 533 years, we would be simplifying numbers without real meaning.
Gold: a store of value or a renewed illusion
Performance against inflation from 1970 to 2023. The price of an ounce jumped from $2080, which is significant, highlighted by 3 major crises.
The 1970s (inflation reached 14%); gold rose from $35 to $850 (1971–1980).
The oil crisis of 1973 and the high interest rates that followed
The 2008 collapse when markets crashed and the financial destruction led people to convert their money into gold as a safe haven.
The role of gold in modern crises
The COVID-19 pandemic in 2020 reached $2075 per ounce, and the financial market was panicking.
SVB Bank crisis March 2023; gold jumped about 6.6% in one week when people lost trust in American banks.
Gold limits
It has no periodic income; there are no profits or periodic benefits like stocks or rental properties.
Industrial demand: about 20% of gold consumption comes from electronics. This is influenced by industrial demand and time.
Bitcoin: digital gold or speculative tool?
Psychological potentials as a refuge
Limited supply of 21 million units, almost no scarcity of gold.
Independent of central banks; a hedge against quantitative easing policies and excessive printing.
Performance during crises: during the Russian invasion of Ukraine in 2022, Bitcoin rose ~15% in a week while moving in the opposite direction of stocks.
Challenges and risks
Rocket-like volatility between 2021 and 2022; lost ~65% of its value (dropped from $24k).
The absence of stable regulations; China's ban on trading in 2021 and fluctuating tax laws around the world.
Limited role in past crises: in the European debt crisis of 2011, gold rose ~30%, and Bitcoin was still a newborn; there was no clear influence.
A quick comparison (1970–2025)
Average annual return
Gold: ≈7%
Bitcoin since 2010 ≈ 200% (but with high risks)
Highest historical level
Gold ≈ $3500.10
Bitcoin ≈ $107,000
Lowest level
Gold ≈ $251 (1999)
Bitcoin $0.001 in 2007 ≈ $3,100 in 2018
Expert opinions
Jerome Powell (Chair of the Federal Reserve): 'Gold is still a traditional shield in crises, and cryptocurrencies still need a long time to gain people's trust.'
Raul Carrasco (commodity expert): 'Bitcoin could take 10% of gold's share in investment portfolios by 2030 if it ensures it reduces its volatility.'
Nouriel Roubini (economist): 'I see Bitcoin as a speculative bubble... and gold is the only reliable foundation.'
Balanced investment strategy
Gold is a 15% hedge against inflation and currency collapse.
Bitcoin carries a 10 to 20% high risk with growth opportunity, but keep your eye on it all the time.
Alternative currencies and stocks 20 to 40% long-term growth (the S&P 500 achieved ~10% annually from 1957 to now)
Bonds and real estate: 20 to 30% fixed income and additional diversification.
