Bitcoin has the potential to capture a portion of gold’s market share in the coming decade as a safeguard against inflation and geopolitical instability, according to Adam Back, CEO of Blockstream.
During a fireside chat with Cointelegraph managing editor Gareth Jenkinson at Paris Blockchain Week 2025, Back stated that increasing inflation and financial volatility worldwide will encourage more people to adopt Bitcoin (BTC).
He drew a comparison between the cryptocurrency and gold, highlighting its limited supply and increasing recognition as a valuable asset, despite experiencing a 30% decline from its peak above $109,000.
“Bitcoin has the advantage of being similar to gold — it’s a scarce asset that is also on an adoption curve,” he explained.
Global economies are still facing inflation issues, with main currencies like the US dollar and the euro having increased their supplies by more than 50% in the last five years — a trend that may promote Bitcoin’s growth as a hedge against financial instability, as noted by Back.
“Ultimately, that money circulates to purchase goods. So eventually, prices will rise accordingly, especially for tangible assets like real estate in the long term,” Back remarked. “The inflation rate could reach around 10% or 15% over the next decade, which is a significant investment return to achieve through stocks or rental properties.”
“There’s a genuine chance for Bitcoin to rival gold and start claiming some of its roles, such as serving as a geopolitical hedge, transferring a portion of that value into Bitcoin.”
Adam Back during a discussion with Gareth Jenkinson of Cointelegraph. Source: Cointelegraph
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The Federal Reserve Bank of Cleveland forecasts an average annual inflation rate of 2.18% over the next ten years, based on data released on March 12.
Inflation forecasts. Source: Federal Reserve Bank of Cleveland via FRED
Nonetheless, alternate data indicates a possible rise in inflation over the next five years.
Consumer inflation expectations have surged to 5% for the coming year and 4.1% over the next five years, raising economic apprehensions, according to a consumer survey conducted by the University of Michigan published on March 28.
Consumer expectations for changes in inflation rates. Source: University of Michigan
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Facilitating Bitcoin adoption through ETFs and policy changes
In addition to increasing monetary uncertainty, US-based spot Bitcoin exchange-traded funds (ETFs) and a more crypto-friendly administration under President Donald Trump may bolster Bitcoin’s adoption as a shield against inflation.
“US regulators have finally approved the ETFs, and the current administration under Trump is alleviating many restrictions that aimed to hinder crypto adoption — such as Operation Chokepoint 2.0,” Back remarked.
Back asserted that the adoption of Bitcoin by individual investors should come before that by institutions or governments:
“I believe it’s better if individuals purchase Bitcoin before governments do because once governments enter the market, it is likely to trigger a wave of other governments competing.”
Source: Margo Martin
On March 7, President Trump signed an executive order establishing a Bitcoin reserve funded by Bitcoin confiscated from criminal cases, a significant move that industry leaders view as a crucial step toward integrating Bitcoin into the traditional financial landscape.
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