According to Blockstream CEO Adam Back, Bitcoin could challenge gold as a hedge against inflation for the next decade. After speaking at Paris Blockchain Week in 2025, he pointed out an increase in inflation and an increase in the adoption of cryptocurrency as a major driver of Bitcoin’s future appeal. He compares the possibilities of Bitcoin with gold and points out that while both are rare assets, Bitcoin also suffers an adoption curve. This makes it a compelling alternative for investors looking for a store that is worth it.
Global inflation is rising, especially in the US and Europe, as money supply is increasing. Major currencies such as the US dollar and the euro have seen supply rise by more than 50% over the past five years. As the value of Fiat currency decreases, hard assets like Bitcoin are becoming more attractive. Back-projected inflation could average an average of 10%-15% over the next decade, making it difficult for traditional investments such as stocks and housing to deliver comparable returns.
In addition to inflation concerns, geopolitical instability could further promote the appeal of Bitcoin. Buck suggested that Bitcoin could ultimately take market share from gold, particularly as a hedge against geopolitical risk. He emphasized that Bitcoin’s value is unstable, and its long-term shortages and increased recognition of its potential as a storage facility for valued positions.
Data from the University of Michigan Consumer Survey suggests that inflation expectations are rising, with consumers projecting 5% inflation next year and 4.1% over the next five years. This surge in inflation expectations could drive further interest in Bitcoin as a safer investment into uncertain economic conditions.
Another factor driving the adoption of Bitcoin is changes in US regulations. Bitcoin’s approval of spot exchange funds (ETFs) and a more favorable attitude towards cryptocurrency under the Trump administration have boosted the market. Buck pointed out that by removing regulatory obstacles such as “Operation Choke Point 2.0,” which previously hindered the growth of crypto, it opened the door for wider adoption of Bitcoin.
He also said individual investors should take the lead in adoption of Bitcoin before the government. He expressed concern that if the government begins to buy Bitcoin, it could cause competition between nations to manage assets. In his view, private investors would be better off buying Bitcoin first, so they can benefit before the government gets involved.
Despite some price fluctuations, the potential as a hedge against Bitcoin inflation and its increasing adoption suggests that it could play a key role in the global financial landscape in the coming years.