Blockstream CEO Adam Back believes that Bitcoin may begin to take over gold’s market share in the coming decade, as it is a good hedge against inflation.
Back, speaking during a conversation with Cointelegraph managing director Gareth Jenkinson in Paris Blockchain Week 2025 said that rising inflation and financial instability will be driving broader Bitcoin adoption.BTC) adoption.
He noted the scarcity of cryptocurrency and its increasing recognition as an asset despite its 30 percent correction. from its all-time high above $109,000.
“Bitcoin has the advantage of being like gold — it’s a scarce asset but also undergoing an adoption curve,” He said.
Inflation continues to plague global economies, with major currencies like the US dollar and the euro seeing their supplies rise by more than 50% over the past five years — a development that may drive Bitcoin’s adoption as a hedge against monetary destabilization, according to Back.
“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,” Back said. “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.”
“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.”
Adam Back at a fireside conversation with Cointelegraph Gareth Jenkinson. Source: Cointelegraph
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Federal Reserve Bank of Cleveland projects that the inflation rate will average 2.18 percent annually over the next 10 years. according The data was published on 12 March.
Forecasts of inflation. Federal Reserve Bank of Cleveland FRED
Alternative data suggests an increase in inflation within the next five-year period.
A consumer survey by the University of Michigan found that consumers’ inflation expectations have spiked up to 5% in the year ahead and to 4,1% for the five-year period. The increase is amplifying concerns about the economy. published The 28th of March is a holiday.
Source: University of Michigan. Consumers’ expected change in inflation rate. Source: University of Michigan
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Adoption of Bitcoin aided with ETFs and a policy shift
Bitcoin may become more popular as an inflation hedge due to the US-based exchange-traded fund (ETF) that tracks spot Bitcoin. A crypto-friendly US government under Donald Trump could also help.
“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,” Back said.
Back claimed that Bitcoin accumulation by governments or institutions should be delayed until private investors adopt the currency.
“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.”
Source: Margo Martin
On March 7, Trump became President signed an executive order to create Industry leaders have called this move a big step in integrating Bitcoin with the conventional financial system.
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Source: cointelegraph.com
