In just a couple of months, Bitcoin has fallen from its record high of about $126,000 to below $90,000. The popular leveraged Bitcoin play MicroStrategy (MSTR) is down 56% this year while gold has soared 55% in 2025.
Bitcoin (see chart below) and crypto are volatile, but many make the argument that it represents “digital gold,” implying that it is a good store of value and hedge on all that troubles investors these days, such as inflation, political instability, a weaker dollar, and our steadily increasing national debt.
You may have seen how far some very experienced and savvy investors are doubling down on Bitcoin.
Mexican billionaire Ricardo Salinas has revealed to Bloomberg that his investment portfolio is mostly allocated to Bitcoin (BTC), gold and shares in his companies. At the time, he had about 70% of his $5.8 billion net worth in Bitcoin and 30% in gold and gold miners, with no bonds and no stocks beyond his own companies.
This may seem preposterous, but I have found that younger investors in particular are placing big bets on Bitcoin as well.
Does the Bitcoin is the new digital gold argument hold up?
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Because of Bitcoin’s scarcity, which is somewhat like gold (it’s limited to a fixed supply of 21 million coins), proponents argue that makes it a hedge against inflation and a store of value.
There are several dubious reasons to accept this widespread “Bitcoin is digital gold” argument.
First, Bitcoin’s price movements show little correlation with gold prices and high correlation to the mega tech stocks that lead the S&P 500 index.
Second, as you can see from the chart below, Bitcoin is significantly more volatile than gold and is buffeted by short-term economic and political news.
Third, while gold has a long history of being a trusted asset and a source of foreign exchange during crises, newcomer Bitcoin has clearly not yet demonstrated it can reliably fill this role.
A better description is that it is a speculative investment driven by financial liquidity and should not be viewed as a hedge or capital protection vehicle.
As you can see below, Bitcoin price movements are clearly not correlated with gold prices at all. Rather, they seem to lead flows into more risky speculative assets. This begs the question: Is Bitcoin a long-term holding or merely a trading asset? Time will tell.
Bitcoin is nowhere close to matching gold as a haven asset. If you want to bet on resumed exuberance and a big tech rally, however, it could be just what you need.
Here are some investment options, beginning with an easy way to invest in Bitcoin, and some alternative safe-haven hedges such as platinum, palladium, and the Swiss Franc.
3 Investment Options if You’re Considering Bitcoin
Grayscale Bitcoin Trust (GBTC) offers investors a way to track very closely to the day-to-day or “spot” movement of bitcoin prices. For aggressive investors comfortable with volatility.
Sprott Platinum and Palladium ETF (SPPP) offers direct exposure to both platinum and palladium, which are selling at a sizable discount to gold, offering potential upside appreciation.
CurrencyShares Swiss Franc Trust (FXF) gives you exposure to a high-quality country and currency with fiscal discipline, a trade surplus, and very little foreign debt, and a reputation as an asset haven in times of stress.
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