Recently, some data sets have sparked quite a bit of discussion in the market, hitting right at the core: Bitcoin's purchasing power relative to gold and silver has significantly shrunk. What does this really mean?

Let's look at some hard numbers. Currently, 1 Bitcoin can be exchanged for about 19 ounces of gold, but at the beginning of the year, this number was 38 ounces. In other words, over just half a year, its purchasing power has been cut in half. The comparison with silver is even more drastic—since May, its purchasing power has shrunk by nearly 70%.

Some have likened Bitcoin to "digital gold," suggesting that recently, its purchasing power has essentially fallen to the level of "digital silver." It sounds a bit exaggerated, but the data is right there.

**What is really being contested behind this?**

This change in comparison actually reflects the rise and fall of two types of capital flows:

On one hand, traditional "old money" is making a comeback. As global economic certainty declines, traditional safe-haven assets like gold and silver—backed by historical consensus and physical backing—are once again attracting central bank and institutional funds, showing strong resilience against declines.

On the other hand, as an emerging asset, Bitcoin's price is more susceptible to liquidity and risk appetite factors. When macroeconomic conditions tighten and market risk sentiment cools, it tends to lag behind in the safe-haven asset race. Simply put, the market prefers assets that are "tangible and visible."

**Is this the end or just a mid-game break?**

It's important to stay rational. The fluctuations in purchasing power mainly reflect short-term capital rotation among different assets, not a fundamental devaluation of Bitcoin itself. Remember, at the end of 2022, 1 Bitcoin was only worth about 9 ounces of gold. The current 19 ounces position is actually more advantageous.

What truly warrants reflection is whether this change tests the narrative of Bitcoin as "digital gold." If an asset is to truly become a "store of value," it must demonstrate relative stability in its purchasing power across different economic cycles. Bitcoin still has lessons to learn in this regard.

But on the other hand, shifts in the relative strength of assets are normal. In a diversified financial market, rotations and switches are constantly happening. No asset can dominate forever.