The war between gold and Bitcoin continues to spark interesting financial discourses, with gold emerging as the winner by 25%, as the world grapples with unprecedented instability.
Nevertheless, in 202,0, crypto investor Anthony Pompliano sparked fresh controversy by terming gold a disastrous investment regardless of its surge. He claimed that the metal was no longer worth 84% of the purchasing power it had at the time of Bitcoin, citing the cryptocurrency as a sound money asset with a limited supply.
Pompliano’s Remarks Trigger Backlash
Conventional market analysts harshly criticized Pompliano for his remarks on X. According to veteran economist Peter Schiff, he was using a false timeframe, who wrote that gold had outperformed not only real estate but also the S&P 500 over the same period. Several analysts emphasized that the value of gold cannot be assessed on a short-term basis, as it has remained stable over the past few decades, which is a testament to its ability to withstand the test of time.
One of the factors that has contributed to the high performance of Gold this year is the inflation, which has continued, the weakening of the dollar, and the growth of geopolitical risk. Metal is now on track to record its best year in many years, since 1979, as investors seek security amid economic uncertainty.
Tether Backs Both Gold and Bitcoin
Despite the ongoing debate, Tether has increased its investments in gold and Bitcoin. CEO Paolo Ardoino validated the two as long-term repositories of value to the company. In 2023, Tether announced that it would allocate 15% of its net operating profits to purchase Bitcoin. The company also has substantial exposure to gold through its tokenized product, Tether Gold (XAUt), which holds over 7.66 tons of physical gold.
Ardoino also made it clear that Tether did not sell its Bitcoin in accordance with its expanded gold reserves. According to him, the two assets work in a complementary manner in the company’s balance sheet. The authors argue that gold and Bitcoin serve as hedges against inflation, helping to mitigate the devaluation of the currency.
In the early part of October 2025, both assets reached their all-time highs, with Bitcoin surpassing $125,000 and gold exceeding $4,000 per ounce. Bitcoin has since recovered above 115,000, a 5% increase in 24 hours, as the market bounced back.
Institutions Rethink Store-of-Value Strategies
Even the institutional investors and central banks are reevaluating their stance on the store-of-value assets. The suggestion that central banks might begin to treat Bitcoin as a digital equivalent of gold was quoted by Bloomberg reporters and economists from Deutsche Bank, including Marion Laboure and Camilla Siazon. They have quoted the diminishing belief in the dollar and rising institutionalization as some of the reasons behind this trend.
The World Gold Council reported that the global gold reserves held by central banks have increased to approximately 35,200 tonnes, accounting for around 16.4% of the total worldwide supply of 216,265 tonnes. Countries like China, Poland, and Kazakhstan have been increasing their holdings, whereas other countries, such as Singapore and Germany, have been decreasing them.
The debate over Bitcoin and gold has been a divisive issue among investors. Though gold has shown a new source of strength in the face of global tension, Bitcoin continues to stay popular as a current hedge. Both remain central assets in the evolving approaches to wealth conservation and inflation protection.
