Gold vs. Bitcoin: The Trust Gap

Gold has been doing better than Bitcoin this year. It's not just about the price. Investors seem to trust gold more. Since the Bitcoin ETFs started in early 2025, many thought Bitcoin would take off. But it hasn't. Gold has actually done better. Bitcoin is down about 12% since January 2024. Gold is up 58% in the same time. Some big investors still prefer gold. They like that gold has been around for a long time. It's used in trade and has a lot of trust behind it. Bitcoin is still new. It doesn't have the same history or infrastructure. Big institutions like central banks and sovereign wealth funds aren't using Bitcoin yet. They're used to gold. They know how it works. Some countries, like those in BRICS, are buying more gold. They're even using it to pay for oil. Bitcoin isn't being used like this. It was made to be a borderless currency. But it's not being used for big international deals yet. Bitcoin's price has dropped a lot recently. It's down over 30% since July. Gold, on the other hand, has been going up. One reason for this is liquidity. When the U. S. government isn't spending money, there's less liquidity. Bitcoin feels this more than gold. It's more sensitive to these changes. But this might not last forever. Liquidity could come back. If the U. S. government starts spending more, Bitcoin could bounce back. Also, as people trust fiat currencies less, Bitcoin might become more appealing. But it's not likely to replace gold anytime soon. Big investors have specific rules. Gold fits those rules. Bitcoin doesn't yet.