Let’s compare gold and Bitcoin.
We will compare Bitcoin, often considered digital gold, with gold, which has been a valuable asset throughout generations.
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Both are considered as value-retaining assets, but the debate on whether Bitcoin should be compared to gold or not continues. This is mainly because Bitcoin is relatively new, having emerged just over a decade ago, and its value has risen significantly as more people began to adopt it around 2020. Additionally, due to extreme price volatility influenced by global affairs, some argue that Bitcoin should not be classified as a stable value-retaining asset.
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Therefore, in this article, we will look at what the differences are and how they compare step by step.
Price volatility
First, let's compare the volatility.
Bitcoin is widely known for its extreme highs and lows. Gold's price fluctuates based on the global economic situation and inflation, and recently, gold prices surged during times when both stock and crypto markets collapsed due to trade wars.
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When comparing price performance,
Bitcoin
averaged $7,200 on January 1, 2020.
averaged $28,900 on December 31, 2020.
averaged $46,300 on December 31, 2021.
averaged $16,500 on December 31, 2022.
averaged $42,000 on December 31, 2023.
averaged $85,000 on December 31, 2024.
was around $103,000 on May 17, 2025, with a price increase of up to 1,330% between 2020 and May 2025. However, we cannot forget that in the meantime, the price dropped from around $69,000 to about $16,000.
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Gold is the world's precious metal.
averaged $1,520 on January 1, 2020.
averaged $1,895 on December 31, 2020.
averaged $1,800 on December 31, 2021.
averaged $1,825 on December 31, 2022.
averaged $2,050 on December 31, 2023.
averaged $2,700 on December 31, 2024.
averaged $3,250 on May 17, 2025. You will notice that gold prices have seen consistent increases. The price of gold has not experienced extreme fluctuations, maintaining its status as a relatively stable asset, with a price increase of 114% from 2020 to May 2025.
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The major difference to note here is that Bitcoin's price increase is significantly more than that of gold. The reason is that gold can be mined continuously from the earth, while Bitcoin is limited to a total of 21 million coins, making it increasingly scarce over time.
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However, Bitcoin will only maintain its value as long as people accept it; if people lose faith in Bitcoin, its value will gradually decline. Gold, on the other hand, has been recognized as a valuable asset for over a thousand years and continues to be regarded as a more stable and reliable asset compared to national currencies.
Value
At this point, the next question arises: Bitcoin started from $0 about 15 years ago, but why has its value risen to over $100,000 now?
The reason is that more and more people are accepting it, and governments and large financial organizations are recognizing Bitcoin and blockchain technology, leading to innovations in the industry, which has resulted in such a significant increase in value.
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We cannot fail to mention Trump’s administration here. During his term, there were repeated mentions of supporting Bitcoin, including blockchain technology, which likely contributed to the rise in Bitcoin’s price. Additionally, large organizations like BlackRock, with trillions of dollars in assets, have also fueled Bitcoin's price increases through Bitcoin ETFs. In the future, as governments and large organizations continue to embrace Bitcoin and blockchain technology, Bitcoin's value is likely to rise, especially with Bitcoin halving occurring every four years, making it scarcer.
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The main point is that as long as people continue to believe in Bitcoin and trust its technology and system, Bitcoin will retain its value.
So, whether it's gold or Bitcoin, what do you need to know before buying?
Gold is quite a challenging asset to buy at a clear market price, so people tend not to worry too much when prices drop but are more concerned about storing it and transferring it. In Myanmar, the price can be different depending on various sources: a price announced by the authorities, the price you get when you call gold shops, the price when you buy in-store, and the price when you cut gold. This creates more excitement in buying and selling.
Another point is about storage. When there are many thefts in various places, even if you have gold as an asset, it's not easy to go to places that are crowded with people, and if you keep it at home, there’s a risk of theft and concern about natural disasters that can lead to damage to homes.
However, many people do not consider such factors when buying gold, focusing instead on protecting themselves from inflation and securing their future. It is especially a choice for the elderly, being a low-risk and value-retaining asset.
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If you're going to buy Bitcoin, you need to be aware of the volatility based on global affairs. When storing, keeping it in a personal wallet is the safest option compared to exchanges. However, for those just starting to buy Bitcoin, it’s not as easy as buying gold from a shop and putting it in a safe. It’s important to first learn the basic security measures related to Bitcoin to avoid scams and mistakes.
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Another point is that while many governments around the world have begun to accept Bitcoin, the regulations are still not firmly established and can undergo many changes. Therefore, it’s important to be aware of these factors, as they can greatly influence market volatility. Among Bitcoin holders, there are many young and middle-aged individuals who tend to take more risks and desire higher profits.
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In conclusion, if you ask which is better between Bitcoin and gold, the answer will depend on personal preference. If you are aware of the potential losses, you can select the asset that aligns with your preferences. Otherwise, wanting to hold both is also a viable option. If you prefer only gold but don't feel secure holding it, blockchain technology provides solutions.
I hope this article gives you something to think about.
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