Adam Back: Bitcoin can compete with gold as a hedge against inflation in the coming decade.

According to Adam Back – CEO of Blockstream, Bitcoin could start to take market share from gold in the coming decade as a hedge against inflation and geopolitical instability.

During a conversation at Paris Blockchain Week 2025, Back stated that the rising inflation and monetary instability in global economies will drive broader acceptance of Bitcoin.

He compared this cryptocurrency to gold, noting its scarcity and increasing acceptance as a means of storing value, despite it being down 30% from its historical peak of over $109,000.

“Bitcoin has an advantage similar to gold — it is a scarce asset but is also in a phase of widespread acceptance,” he said.

Inflation continues to pose challenges for global economies, with major currencies like the USD and euro increasing their supply by more than 50% over the past 5 years — a trend that, according to Back, could drive the adoption of Bitcoin as a hedge against currency instability.

“Eventually, that money will be used to buy all the goods. Therefore, they will increase in price accordingly, especially tangible assets such as houses or anything with long-term value. The inflation rate will likely be at 10% or 15% over the next decade — a level that is difficult to achieve from stocks or rentals. So there is a real possibility that Bitcoin will compete with gold and start taking on some of gold’s roles, such as a hedge against geopolitical risks and attracting some of the cash flows from gold to Bitcoin.”

Adam Back (white shirt) – CEO of BlockstreamThe Federal Reserve Bank of Cleveland forecasts that the average inflation rate over the next 10 years will be 2.18% per year, according to data released on March 12.

Inflation forecast | Source: FREDThe alternative data suggest the likelihood that inflation will rise within the next 5 years.

According to a survey by the University of Michigan released on March 28, consumer inflation expectations surged to 5% for the coming year and 4.1% over the next five years – a development that raises concerns about the economic situation.

Expectations for changes in consumer inflation rates | Source: University of Michigan## C****onsideration of Bitcoin is driven by ETFs and policy changes

In addition to the increasing monetary instability, spot Bitcoin ETFs in the United States and the U.S. government being more friendly towards cryptocurrency under President Donald Trump may contribute to the acceptance of Bitcoin as a hedge against inflation.

“Regulatory agencies in the United States have finally approved ETF funds, and the current Trump administration is rolling back many negative regulations that were intended to slow down the adoption of cryptocurrency — such as Operation Chokepoint 2.0,” Back said.

This argument states that the acceptance of Bitcoin from individual investors should occur before the accumulation activities of organizations or governments:

“I like these people buying Bitcoin before the government, because once the governments start buying, it could create a competitive wave between countries.”

On March 7, President Trump signed an executive order establishing a Bitcoin reserve fund, which is formed from Bitcoins seized in criminal cases — a move that industry leaders call a significant step forward in integrating Bitcoin into the traditional financial system.

Disclaimer*: This article is for informational purposes only and is not investment advice. Investors should do their due diligence before making any decisions. We are not responsible for your investment decisions*

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Dinh Dinh

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