Bitcoin Bulls Defend the Asset Amid Gold and Equity Outperformance
Bitcoin (BTC $87,780.36) is underperforming traditional narratives, struggling to act as an inflation hedge or safe-haven asset amid global uncertainty. While gold has surged over 80% during high inflation and geopolitical tension, Bitcoin has declined 14% year over year.
This performance gap prompts a question: why invest in Bitcoin when gold and equities are delivering stronger returns? Longtime Bitcoin advocates offer several explanations.
Investor Familiarity
Jessy Gilger, senior advisor at Gannett Wealth Advisors, points to gold’s “muscle memory.” “Institutions retreat to what they know in times of fear,” she said. “Bitcoin has remained technically steady for over 15 years. Over time, markets will recognize digital scarcity is more efficient than physical gold, and Bitcoin should catch up.”
Supply Flow, Not Demand
Mark Connors, CIO at Risk Dimensions, highlights supply redistribution. “Institutional ETF inflows are absorbing a decade’s worth of early-adopter supply. This is a transfer of ownership, not a lack of demand.”
Tech-Like Behavior
Charlie Morris, CIO at ByteTree, notes Bitcoin mirrors tech stocks. “Gold serves the real world; Bitcoin the digital world. Its recent performance reflects tech stock behavior, not asset failure.”
Delayed Rotation
Peter Lane, CEO of Jacobi Asset Management, says investor trust in gold and silver drives current allocations. “Bitcoin hasn’t yet earned that trust, but rotation into BTC could come as confidence grows.”
Long-Term Potential
Anthony Pompliano (ProCap Financial) and David Parkinson (Musquet) argue Bitcoin’s fixed supply and growing network make it the Internet’s native monetary asset—a permanent solution to inflation, not a temporary hedge.
Relative Opportunity
Andre Dragosch (Bitwise) notes Bitcoin remains undervalued relative to gold and global money supply, suggesting upside potential as capital rotates.
Despite short-term underperformance, bulls believe Bitcoin’s fundamentals and structural factors point to eventual recovery and strong long-term growth.
