The allure and risks of Bitcoin coexist.

First of all, Bitcoin is not a substitute for gold, but an asset based on a different logic. The hedging function of gold is mainly reflected in geopolitical risks and inflation expectations; for example, during an escalation of trade wars, gold often performs more resiliently.

Bitcoin's unique advantage lies in its decentralized nature, which can hedge against systemic risks in the financial system. For instance, during the collapse of Silicon Valley Bank in 2023, Bitcoin's performance was more robust than traditional risk assets. Moreover, recent doubts about the independence of the Federal Reserve and the worsening U.S. debt issues have increased Bitcoin's appeal.