Bitcoin could soon compete with gold as a hedge against inflation over the next decade, according to Blockstream CEO Adam Back. Speaking at the 2025 Paris Blockchain Week, Back highlighted rising inflation and the growing adoption of cryptocurrency as key factors that could enhance Bitcoin’s appeal in the coming years. He drew parallels between Bitcoin and gold, noting that while both assets are scarce, Bitcoin benefits from an ongoing adoption curve, which may make it a more attractive option for investors seeking a reliable store of value.
Bitcoin’s Growing Appeal Amid Rising Inflation
Back pointed to increasing inflation, particularly in the U.S. and Europe, as a driving force behind Bitcoin’s potential. Over the past five years, the supply of major currencies like the U.S. dollar and euro has surged by more than 50%, eroding the value of fiat currencies. With inflation expected to average between 10% and 15% annually over the next decade, traditional investments such as stocks and real estate may struggle to offer comparable returns. As a result, Back predicted that Bitcoin’s role as a hard asset could become more prominent, positioning it as a viable alternative for those seeking to hedge against inflation.
Geopolitical Instability Could Boost Bitcoin’s Appeal
In addition to inflation concerns, geopolitical instability may further fuel Bitcoin’s rise. Back suggested that Bitcoin could eventually take market share from gold, especially as a hedge against political and economic risks. Although Bitcoin’s value has fluctuated in the past, its long-term scarcity and increasing recognition as a store of value could help it gain broader adoption in the future.
Consumer expectations for inflation are also on the rise. According to data from the University of Michigan’s consumer survey, inflation expectations have surged, with respondents predicting 5% inflation over the next year and 4.1% over the next five years. This growing sense of uncertainty could further drive interest in Bitcoin as a safer investment during volatile economic times.
Regulatory Developments Fueling Bitcoin Adoption
Another significant factor driving Bitcoin’s adoption is regulatory change in the U.S. The approval of Bitcoin spot exchange-traded funds (ETFs) and the more crypto-friendly stance under the Trump administration have helped to remove some of the regulatory barriers that previously hindered the growth of the market. Back emphasized that removing obstacles such as “Operation Chokepoint 2.0” has opened the door for wider Bitcoin adoption.
The Role of Individual Investors in Bitcoin’s Future
Back also underscored the importance of individual investors in Bitcoin’s early adoption. He cautioned that once governments begin purchasing Bitcoin, competition among nations for control of the asset could follow. Private investors, Back argued, are better positioned to acquire Bitcoin first, allowing them to benefit before governments become involved in the market.
Bitcoin’s Long-Term Potential as an Inflation Hedge
Despite some price fluctuations, Bitcoin’s increasing adoption and its potential as a hedge against inflation position it to play a significant role in the global financial landscape. With rising inflation, geopolitical uncertainty, and ongoing regulatory changes, Bitcoin could emerge as a prominent asset for investors looking for stability in the years to come.
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