Bitcoin to Rival Gold as Ultimate Inflation Hedge, Adam Back Predicts

Is Bitcoin poised to become the new gold? Blockstream CEO Adam Back boldly predicts that Bitcoin could not only rival, but potentially surpass gold as the go-to inflation hedge within the next decade. Speaking at Paris Blockchain Week 2025, Back highlighted growing concerns over persistent inflation and global economic instability as key drivers for increased Bitcoin adoption. Let’s dive into why this crypto veteran believes Bitcoin’s moment to shine is on the horizon.

Bitcoin: The Emerging Inflation Hedge Champion?

In a compelling fireside chat at Paris Blockchain Week 2025, Adam Back, CEO of Blockstream, articulated a strong case for Bitcoin‘s ascent as a dominant inflation hedge. He pointed out that the current economic climate, characterized by rising inflation and geopolitical tensions, creates a perfect storm for Bitcoin to gain traction. Back drew parallels between Bitcoin and gold, emphasizing Bitcoin’s inherent scarcity and its increasing recognition as a valuable store of value. Even with recent market corrections, Bitcoin’s underlying fundamentals and adoption curve remain strong, according to Back.

He stated, “Bitcoin has the advantage of being like gold — it’s a scarce asset but also undergoing an adoption curve.” This dual nature of scarcity and growing adoption positions Bitcoin uniquely in the current financial landscape.

The Relentless Grip of Inflation: Fueling Bitcoin’s Rise?

Inflation continues to be a major headache for global economies. Major currencies like the US dollar and the Euro have seen their supplies dramatically increase in recent years, potentially devaluing traditional savings. Adam Back argues that this monetary expansion is a crucial factor driving Bitcoin’s appeal as an alternative asset. As inflation erodes the purchasing power of fiat currencies, assets like Bitcoin, with a limited supply, become increasingly attractive as a store of value.

Back elaborated, “Eventually, that money is used to buy all the goods. So eventually they will go up by that much, particularly hard assets like housing, anything physical long term. The inflation rate is probably 10% or 15% for the next decade, an investment return that is very hard to get with stocks or housing rentals.”

This persistent high inflation, according to Back, creates a compelling investment case for Bitcoin, potentially diverting capital away from traditional safe havens like gold and into the digital asset space.

Challenging Gold’s Dominance: Bitcoin’s Decade of Opportunity

Could Bitcoin truly challenge gold‘s long-standing reign as the ultimate safe-haven asset? Adam Back believes so. He envisions a future where Bitcoin progressively captures market share from gold, especially as a geopolitical hedge. Bitcoin’s digital nature offers advantages over physical gold in terms of portability, divisibility, and ease of storage, making it a potentially more practical hedge in an increasingly digital world.

“So there’s a real prospect of Bitcoin competing with gold and then starting to take some of the gold use cases, like as a geopolitical hedge, take some of that money into Bitcoin,” Back asserted.

Adam Back during a fireside chat with Crypto News Insights’s Gareth Jenkinson. Source: Crypto News Insights

Contrasting Inflation Forecasts: The Uncertainty Factor

While Adam Back predicts a sustained high inflation rate, it’s important to consider varying perspectives. Data from the Federal Reserve Bank of Cleveland projects a more moderate 10-year inflation rate averaging around 2.18% annually. However, alternative data points, such as consumer surveys from the University of Michigan, reveal higher short-term inflation expectations, spiking to 5% for the next year and 4.1% over the next five years. This divergence in inflation forecasts highlights the inherent uncertainty and the range of potential economic scenarios that could unfold.

Inflation projections. Source: Federal Reserve Bank of Cleveland via FRED

Consumers; expected change in inflation rates. Source: University of Michigan

ETFs and Policy Shifts: Catalysts for Bitcoin Adoption

Beyond macroeconomic factors, Adam Back also emphasized the role of regulatory developments in boosting Bitcoin adoption. The approval of spot Bitcoin ETFs in the US and a perceived shift towards a more crypto-friendly stance by the US administration under President Trump are seen as significant tailwinds for Bitcoin. These developments could pave the way for broader institutional and retail investment in Bitcoin, further solidifying its position as a mainstream asset.

Back noted, “US regulators approved the ETFs, finally, and the current US administration under Trump is removing a lot of negative regulation that was intended to slow down crypto adoption — like Operation Chokepoint 2.0.”

Decentralized Adoption: People Powering Bitcoin’s Growth

Adam Back also stressed the importance of grassroots Bitcoin adoption, advocating for individual investors to lead the charge. He believes that widespread adoption by individuals should precede government or institutional accumulation to maintain Bitcoin’s decentralized ethos. This approach ensures that Bitcoin remains a truly people-powered asset, resistant to centralized control.

“I prefer that those people buy Bitcoin ahead of governments because as soon as governments buy, it’s probably going to create a wave of other governments competing with them,” Back explained.

Source: Margo Martin

The recent executive order signed by President Trump to create a Bitcoin reserve in the US, seeded with seized Bitcoin, signals a potential shift towards greater government acceptance and integration of Bitcoin into the traditional financial system.

Conclusion: Bitcoin’s Golden Decade Beckons?

Adam Back’s prediction paints a compelling picture of Bitcoin’s future. As inflation concerns persist and regulatory landscapes evolve, Bitcoin appears increasingly well-positioned to challenge gold‘s dominance as the premier inflation hedge. Whether Bitcoin will fully surpass gold remains to be seen, but the stage is set for an exciting decade where Bitcoin’s role in the global financial system is likely to expand significantly. Keep a close watch on this evolving narrative as Bitcoin potentially embarks on its golden decade.