Bitcoin to eclipse gold? Blockstream CEO predicts crypto’s inflation hedge dominance

• Blockstream CEO says Bitcoin could compete with gold as an inflation hedge.
• Rising inflation and increased crypto adoption are key drivers.
• Back predicts inflation could average 10% to 15% annually.

Bitcoin has the potential to surpass gold as the go-to hedge against inflation within the next decade, according to Adam Back, CEO of Blockstream.

Speaking at Paris Blockchain Week 2025, Back highlighted the confluence of rising global inflation and the increasing adoption of cryptocurrency as key factors driving Bitcoin’s future appeal.

Back drew a parallel between Bitcoin and gold, noting their shared characteristic of scarcity. However, he argued that Bitcoin possesses an additional advantage: its position on a rapidly accelerating adoption curve.

This combination of scarcity and growing acceptance makes Bitcoin a particularly compelling alternative for investors seeking a reliable store of value in an increasingly uncertain economic landscape.

Global inflation has been steadily rising, particularly in the United States and Europe, fueled in part by the dramatic expansion of the money supply.

Back pointed out that major currencies like the US dollar and euro have seen their supplies balloon by over 50% in the past five years, eroding their purchasing power.

As the value of fiat currencies diminishes, hard assets like Bitcoin are becoming increasingly attractive as a way to preserve wealth.

Back predicted that inflation could average 10% to 15% annually over the next decade, making it challenging for traditional investments like stocks or housing to provide comparable returns, further bolstering the appeal of alternative assets.

Geopolitical instability: Bitcoin as a safe haven

In addition to inflationary concerns, geopolitical instability is another factor that could drive Bitcoin’s adoption.

Back suggested that Bitcoin could gradually erode gold’s market share, particularly as a hedge against geopolitical risks.

While acknowledging Bitcoin’s historical price volatility, he emphasized its long-term scarcity and the growing recognition of its potential as a reliable store of value, positioning it favorably for future adoption amidst increasing global uncertainty.

Data from the University of Michigan’s consumer survey suggests that inflation expectations are indeed on the rise, with consumers predicting 5% inflation over the next year and 4.1% over the next five years.

This surge in inflation expectations is likely to fuel further interest in Bitcoin as a safer investment option during uncertain economic times.

Regulatory tailwinds: a more favourable environment for Bitcoin

Regulatory changes in the United States are also contributing to Bitcoin’s growing appeal.

The approval of Bitcoin spot exchange-traded funds (ETFs) and a generally more favorable stance towards cryptocurrencies under the Trump administration have provided a significant boo