- Blockstream CEO says Bitcoin could compete with gold as an inflation hedge.
- Rising inflation and increased crypto adoption are key drivers.
- Back predicts inflation could average 10% to 15% annually.
Bitcoin has the potential to surpass gold as the go-to hedge against inflation within the next decade, according to Adam Back, CEO of Blockstream.
Speaking at Paris Blockchain Week 2025, Back highlighted the confluence of rising global inflation and the increasing adoption of cryptocurrency as key factors driving Bitcoin’s future appeal.
Back drew a parallel between Bitcoin and gold, noting their shared characteristic of scarcity. However, he argued that Bitcoin possesses an additional advantage: its position on a rapidly accelerating adoption curve.
This combination of scarcity and growing acceptance makes Bitcoin a particularly compelling alternative for investors seeking a reliable store of value in an increasingly uncertain economic landscape.
Global inflation has been steadily rising, particularly in the United States and Europe, fueled in part by the dramatic expansion of the money supply.
Back pointed out that major currencies like the US dollar and euro have seen their supplies balloon by over 50% in the past five years, eroding their purchasing power.
As the value of fiat currencies diminishes, hard assets like Bitcoin are becoming increasingly attractive as a way to preserve wealth.
Back predicted that inflation could average 10% to 15% annually over the next decade, making it challenging for traditional investments like stocks or housing to provide comparable returns, further bolstering the appeal of alternative assets.
Geopolitical instability: Bitcoin as a safe haven
In addition to inflationary concerns, geopolitical instability is another factor that could drive Bitcoin’s adoption.
Back suggested that Bitcoin could gradually erode gold’s market share, particularly as a hedge against geopolitical risks.
While acknowledging Bitcoin’s historical price volatility, he emphasized its long-term scarcity and the growing recognition of its potential as a reliable store of value, positioning it favorably for future adoption amidst increasing global uncertainty.
Data from the University of Michigan’s consumer survey suggests that inflation expectations are indeed on the rise, with consumers predicting 5% inflation over the next year and 4.1% over the next five years.
This surge in inflation expectations is likely to fuel further interest in Bitcoin as a safer investment option during uncertain economic times.
Regulatory tailwinds: a more favourable environment for Bitcoin
Regulatory changes in the United States are also contributing to Bitcoin’s growing appeal.
The approval of Bitcoin spot exchange-traded funds (ETFs) and a generally more favorable stance towards cryptocurrencies under the Trump administration have provided a significant boost to the market.
Back emphasized that the removal of regulatory obstacles, such as “Operation Chokepoint 2.0,” which had previously hampered crypto growth, has paved the way for more widespread Bitcoin adoption.
Back stressed that individual investors should spearhead Bitcoin adoption, outpacing governments in the acquisition of the cryptocurrency.
He voiced concerns that if governments begin accumulating Bitcoin, it could spark a competitive scramble among nations for control of the asset, potentially disrupting the market.
In his view, private investors are better positioned to acquire Bitcoin first, allowing them to reap the benefits before governments potentially complicate the landscape.
Despite the inherent price volatility of Bitcoin, its potential as a hedge against inflation, coupled with its increasing adoption, suggests it is poised to play an increasingly significant role in the global financial system in the years to come.
