Is Bitcoin or gold a good store of wealth? Let’s do an analysis using their performances in February 2025.
Bitcoin dropped below briefly below $80,000 on 27 February 2025, before recovering to $86,000 at the point of writing this article on 2 March 2025. The leader of all cryptocurrencies started the the month at above $100,000. Countless number of “crypto experts” predicted an imminent bull run towards $200,000 and beyond. However, the “gold” of the crypto world ended the month 17% lower.
Gold prices retreated as well during last few trading days of February 2025. While there were reports that speculators were selling their long positions in precious metals to cover losses in Bitcoin, gold prices remains pretty stable. Gold has been trending up relentlessly in 2025, the slight corrective pullback was a norm. Markets do not move in a straight line. The yellow metal was still up 1.8% in the month.
Bitcoin has been on a wild ride since it was created in 2009. It has no intrinsic value and is not backed by anything. Bitcoin devotees will justify its value from its scarcity of 21 million digital coins. Bitcoin investors are waiting for someone else to buy up their precious digital coins at a higher value – the greater fool theory.
The above illustrations clearly demonstrated that Bitcoin is not a good store of wealth. This is only one of the numerous wild price swings over the past 15 years. Gold on the other hand, withstood the test of time as sound money for thousand of years. Basic common sense, Central Banks buy gold. Criminal syndicates trade using Bitcoin. How can an asset constantly linked to illicit activities be a good store of wealth?
Disclaimer: All content is provided for informational and educational purposes only. Precious metals investments involve financial risk. Readers should conduct their own research before making any investment decisions.
