Bitcoin could emerge as a significant competitor to gold in the coming decade, driven by its potential to hedge against inflation and geopolitical instability, according to Adam Back, CEO of Blockstream. Speaking at Paris Blockchain Week 2025 during a fireside chat with Cointelegraph’s Gareth Jenkinson, Back discussed the increasing adoption of Bitcoin in response to rising inflation and the broader monetary instability affecting global economies.
Back drew comparisons between Bitcoin and gold, emphasizing their shared characteristic of scarcity. Despite Bitcoin experiencing a 30% correction from its all-time high above $109,000, Back highlighted the cryptocurrency’s growing recognition as a store of value. “Bitcoin has the advantage of being like gold — it’s a scarce asset but also undergoing an adoption curve,” he said, underscoring its potential as a long-term investment.
The global inflationary environment is a key driver of Bitcoin’s appeal, according to Back. Over the past five years, the money supply of major currencies such as the US dollar and the euro has risen by more than 50%. This inflationary trend, Back noted, is pushing demand for assets like Bitcoin, which can serve as a hedge against the devaluation of fiat currencies. “Eventually, that money is used to buy all the goods. So, eventually, prices will rise — particularly for hard assets like housing or anything physical in the long term,” he explained.
Back projected that inflation could continue to climb over the next decade, with rates possibly reaching 10% to 15%. He pointed out that such inflationary pressures make it challenging for traditional assets like stocks and real estate to offer returns that can match the potential of Bitcoin as an inflation hedge.
Data from a recent University of Michigan consumer survey supports Back’s outlook, with consumer inflation expectations spiking to 5% for the next year and 4.1% over the next five years, further fueling concerns about economic stability.
Bitcoin Adoption Driven by ETFs and Shifting Policy
In addition to inflation, Back also highlighted the role of emerging financial products, such as US-based spot Bitcoin exchange-traded funds (ETFs), in boosting Bitcoin’s adoption. He suggested that the approval of these ETFs, combined with a more crypto-friendly US administration under President Donald Trump, could accelerate Bitcoin’s mainstream acceptance.
“US regulators approved the ETFs, finally, and the current US administration under Trump is removing a lot of negative regulation that was intended to slow down crypto adoption — like Operation Chokepoint 2.0,” Back said, noting that these policy changes could further support Bitcoin’s role as an inflation hedge.
While institutional adoption is important, Back emphasized that private investors are likely to lead the way in Bitcoin adoption. He argued that widespread individual investment would set the stage for greater institutional and governmental participation in the cryptocurrency market.
As inflation continues to rise and global financial uncertainties persist, Bitcoin’s appeal as an alternative store of value is expected to grow, potentially challenging gold’s dominance in the years ahead.
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