Bitcoin could replace gold as harder money

Bitcoin is currently trading at $65.700 and is gaining increasing attention as an alternative to traditional stores of value. While gold has a market value of approximately $30 trillion, Bitcoin’s is only $1.3 trillion. Investor Lawrence Lepard sees this large gap not as a disadvantage, but as a huge opportunity.

Bitcoin is available at OKX and Bybit.

Bitcoin vs Gold: The Properties Speak

Lepard argues that Bitcoin has far better properties than gold as a form of money. The main argument revolves around inflation. Bitcoin only grows by a small amount annually, whereas gold is produced more each year through new mining. This makes Bitcoin much ‘harder’ money than gold based on stock-to-flow.

Additionally, Lepard points to practical advantages. Bitcoin is much easier to move than physical gold, simpler to store, and much faster to verify its authenticity. This combination of superior monetary properties and practical benefits, in his view, makes Bitcoin the logical choice for anyone looking to store value.

A Trillion-Dollar Gap

The difference in market capitalisation is striking. Bitcoin represents about 4% of the total gold market. If Lepard is correct in his analysis that Bitcoin is fundamentally better money, then that ratio could shift. This would mean that Bitcoin could still grow in value by dozens of times.

For investors looking to buy Bitcoin, the question is therefore not so much whether Bitcoin is valuable, but how valuable it should ultimately be. Lepard’s firm view aligns with broader debates within the Bitcoin community about the role of cryptocurrencies in the financial system.

These kinds of arguments contribute to the growing optimism among investors about Bitcoin’s long-term potential, despite recent price declines.