Bitcoin will replace gold as the leading 'store of value' over the next decade

Bitcoin Hits $100,000 for the First Time, Signaling a Shift in Global Store of Value, Says Bernstein

Bitcoin has surpassed $100,000 for the first time, marking a major milestone that positions it as a potential replacement for gold as the world’s leading store of value, Bernstein said on Thursday.

“Our conviction in Bitcoin goes beyond short-term fluctuations,” analyst Gautam Chhugani wrote, forecasting that the cryptocurrency will hit $200,000 by late 2025.

“We believe Bitcoin will evolve into the premier modern 'store of value' asset, replacing gold within the next decade and becoming an integral part of institutional multi-asset portfolios and corporate treasury strategies,” Chhugani added.

A Crypto Milestone

The prediction comes on the heels of Bitcoin breaking the $100,000 barrier on Wednesday. The cryptocurrency has surged since Donald Trump’s election, as investors anticipate a regulatory environment more favorable to crypto.

This optimism has spurred a wave of buy-and-hold activity among institutional investors, Chhugani noted.

Bitcoin spot ETFs have amassed approximately $100 billion since their launch earlier this year, making them the fastest-growing ETFs in history. Simultaneously, companies like MicroStrategy have aggressively adopted a "Bitcoin treasury strategy," holding over $40 billion worth of Bitcoin on their balance sheets. Other corporations are following suit.

Institutional Adoption and Regulatory Support

Bernstein credits Bitcoin spot ETFs with enhancing the cryptocurrency’s appeal as a store of value by offering traditional investors a convenient way to gain exposure. Meanwhile, new Financial Accounting Standards Board (FASB) guidelines are expected to simplify Bitcoin’s inclusion on corporate balance sheets, paving the way for further adoption.

“We anticipate increasing demand from corporate treasuries, with MicroStrategy and smaller firms currently leading the charge,” Chhugani noted.

Bitcoin vs. Gold

Bitcoin’s rise as an institutional asset could challenge gold’s long-standing role in global finance. Gold has traditionally been favored for its finite supply, which underpins its value over time.

However, Bitcoin shares similar characteristics, with a maximum supply capped at 21 million tokens. This design makes it a viable alternative for those seeking a hedge against inflation and a reliable store of value.

Government Adoption on the Horizon?

Some experts foresee a potential embrace of Bitcoin by the U.S. government. Senator Cynthia Lummis has suggested the establishment of a national Bitcoin reserve, with the government potentially funding such a move by selling Federal Reserve-held gold certificates.

As Bitcoin continues its evolution from speculative asset to institutional mainstay, its role in the global economy could redefine traditional financial paradigms.