According to Blockstream CEO Adam Back, Bitcoin may pose a significant challenge to gold as a hedge against inflation in the next decade. During his remarks at Paris Blockchain Week 2025, Back highlighted rising inflation and the expanding acceptance of cryptocurrency as primary factors driving Bitcoin’s future attractiveness. He likened Bitcoin’s potential to that of gold, indicating that while both are finite resources, Bitcoin is currently experiencing an adoption curve, making it a promising option for investors in search of a secure store of value.
Inflation levels are climbing globally, particularly in the U.S. and Europe, driven in part by an influx of money supply. Over the last five years, major currencies such as the U.S. dollar and euro have increased their supply by more than 50%. As the purchasing power of fiat currencies declines, tangible assets like Bitcoin are becoming increasingly appealing. Back forecasts that inflation could average between 10% and 15% annually over the next decade, posing challenges for traditional investments such as stocks and real estate to deliver similar returns.
Geopolitical instability could also elevate Bitcoin’s attractiveness as a hedge, according to Back. He remarked that Bitcoin might ultimately capture market share from gold, especially in relation to safeguarding against geopolitical uncertainties. He underscored that although Bitcoin’s value can be erratic, its inherent scarcity and the rising acknowledgment of its potential as a store of value enhance its prospects for broader adoption.
Data from the University of Michigan’s consumer survey indicates a rise in inflation expectations, with consumers anticipating a 5% inflation rate over the next year and 4.1% over the next five years. This increase in inflation expectations may intensify interest in Bitcoin as a safer investment during uncertain economic conditions.
Regulatory shifts in the United States are also spurring Bitcoin’s adoption. The introduction of Bitcoin spot exchange-traded funds (ETFs) and a more welcoming approach towards cryptocurrencies during the Trump administration have bolstered the market. Back mentioned that the removal of regulatory barriers, like “Operation Chokepoint 2.0,” which previously stifled crypto innovation, has paved the way for broader Bitcoin adoption.
Back further pointed out that individual investors are likely to lead Bitcoin adoption before governments do. He expressed concern that government purchases of Bitcoin could spark a race among nations for dominance over the asset. In his opinion, private buyers are in a better position to invest in Bitcoin first, allowing them to reap the benefits prior to governmental involvement.
Despite facing some price volatility, Bitcoin’s potential as a hedge against inflation and its accelerating adoption indicate it could hold a significant place in the global financial landscape in the years to come.
