Does Bitcoin deserve to be called digital gold?
1. Market Value: Gold Is in a Different League
As of May 2025, gold's market capitalization stands at approximately $22.4 trillion, significantly surpassing Bitcoin's market cap of around $2.16 trillion. This substantial gap underscores that Bitcoin still has a considerable journey ahead before it can match gold's global financial significance.(Companies Market Cap)
2. Stability and Trust: Gold Shines in Uncertainty
Gold has long been regarded as a safe haven during times of economic instability. In 2025, gold prices have risen by over 27% since the beginning of the year, reaching new highs amid concerns over inflation, geopolitical tensions, and fiscal uncertainties. This steady appreciation reinforces gold's role as a stable asset and a trusted store of value over time.(Business Insider)
3. Volatility: Bitcoin’s Biggest Weakness
Bitcoin is known for its extreme price volatility. Studies indicate that when the proportion of whale investors in the Bitcoin market increases from 1% to 6%, daily volatility can rise by over 100%. Such significant fluctuations, often influenced by large holders' actions, make Bitcoin less reliable as a store of value compared to gold.(ScienceDirect)
Conclusion
While Bitcoin has made impressive strides over the years, it still lacks the stability, scale, and trust that gold has established over centuries. Until Bitcoin can address these challenges, it remains far from being a true alternative to gold in the eyes of most investors.
