How Does Bitcoin Compare to Gold and Fiat Money?

Bitcoin is often described as “digital gold,” thanks to its scarcity, durability, and resistance to manipulation. Like gold, no one can create more Bitcoin beyond its predetermined supply schedule. However, Bitcoin has advantages: it’s easier to store, easier to verify, and easier to transport. You can send Bitcoin across the world in minutes—something that is impossible with physical gold.

Compared to fiat money like dollars or euros, Bitcoin is fundamentally different. Fiat money is controlled by central banks, which can increase supply at will. This flexibility is useful for government policy but can lead to inflation over time. Bitcoin, on the other hand, follows a strict supply schedule that no institution can change. This makes it attractive to people seeking protection from monetary inflation.

In terms of performance, Bitcoin has historically been more volatile than both gold and fiat. However, its long-term trend has been strongly upward as more people adopt it. For many, Bitcoin is a hybrid: digital gold for long-term savings, with the added ability to act as global digital cash through technologies like the Lightning Network.