During a discussion at Paris Blockchain Week 2025, Blockstream CEO Adam Back suggested that Bitcoin could emerge as a rival to gold in serving as a safeguard against inflation in the next decade. He highlighted the upward trend in inflation rates and the expanding use of cryptocurrency as factors that will enhance Bitcoin's attractiveness in the future. Back drew comparisons between Bitcoin and gold, noting their scarcity but emphasizing that Bitcoin is also experiencing a rise in adoption, making it a tempting choice for investors looking for a reliable store of value.
The escalating inflation, particularly in the U.S. and Europe, due in part to the increased money supply, has made traditional investments less appealing. With major currencies such as the U.S. dollar and euro witnessing a supply surge of more than 50% in the last five years, hard assets like Bitcoin have been gaining favor. Back forecasted that inflation could reach an average of 10% to 15% annually over the next ten years, making conventional investments like stocks or real estate less lucrative in comparison.
Apart from concerns about inflation, Bitcoin could see increased interest due to geopolitical uncertainties. Back indicated that Bitcoin might eventually rival gold, particularly as a hedge against geopolitical risks. Despite Bitcoin's price volatility, its long-term scarcity and the growing acknowledgment of its potential as a store of value position it favorably for wider adoption in the future.
Consumer survey data from the University of Michigan highlights an upsurge in inflation forecasts, with consumers expecting a 5% inflation rate in the upcoming year and 4.1% over the next five years. This surge in inflation expectations could fuel greater attraction towards Bitcoin for investment security during uncertain economic periods.
The United States' regulatory modifications have also propelled Bitcoin's acceptance. The approval of Bitcoin spot exchange-traded funds (ETFs) and a more favorable outlook on cryptocurrencies under the Trump administration have given the market a boost. Back pointed out that the removal of regulatory impediments, such as the previously obstructive "Operation Chokepoint 2.0," has paved the way for wider Bitcoin acceptance.
Back emphasized the importance of individual investors taking the lead in Bitcoin adoption before governments step in. He expressed apprehension that governmental acquisitions of Bitcoin could incite a competition among nations for dominance over the asset. In his perspective, private investors are in a better position to invest in Bitcoin initially, enabling them to reap the benefits prior to governmental involvement.
Despite fluctuations in its value, Bitcoin's role as a hedge against inflation and its growing acceptance hint at its potential significance in the global financial sphere in the forthcoming years.