Gold vs. Bitcoin: The Trust Gap

Investor Trust in Gold Remains Strong

Gold has been doing better than Bitcoin this year. It's not just about the price. Investors seem to trust gold more.

Since the Bitcoin ETFs started in early 2025, many thought Bitcoin would take off. But it hasn't. Gold has actually done better.

• Bitcoin: Down about 12% since January 2024
• Gold: Up 58% in the same time

Why Big Investors Prefer Gold

Some big investors still prefer gold. They like that gold has been around for a long time. It's used in trade and has a lot of trust behind it.

• Bitcoin: Still new, lacks history and infrastructure
• Gold: Trusted by institutions like central banks and sovereign wealth funds

Gold in International Trade

Some countries, like those in BRICS, are buying more gold. They're even using it to pay for oil.

• Bitcoin: Not being used for big international deals yet
• Bitcoin: Made to be a borderless currency, but not yet widely adopted

Recent Price Movements

Bitcoin's price has dropped a lot recently. It's down over 30% since July. Gold, on the other hand, has been going up.

Reasons for the Difference

• Liquidity: When the U.S. government isn't spending money, there's less liquidity. Bitcoin feels this more than gold.
• Sensitivity: Bitcoin is more sensitive to these changes.

Future Outlook

But this might not last forever.

• Liquidity: Could come back if the U.S. government starts spending more.
• Trust in Fiat: As people trust fiat currencies less, Bitcoin might become more appealing.

However, Bitcoin is not likely to replace gold anytime soon.

• Big Investors: Have specific rules. Gold fits those rules. Bitcoin doesn't yet.