Some see cryptocurrency as a replacement for the dollar as the global reserve currency.

Over the past five years, gold has outperformed Bitcoin in returns, raising questions about the narrative of cryptocurrency as a digital version of the precious metal. This is reported by DL News.

On Friday, the price of gold plummeted from its previously reached historic high. Bitcoin reacted with a relatively modest decline, but over the past year, its value has dropped by about 20%.

“Bitcoin has never been a reliable safe haven; it is much more volatile than gold and subject to multiple double-digit declines,” said Nansen analyst Jake Kenny.

Supporters of the first cryptocurrency often position it as a digital store of value akin to precious metals, citing its limited supply. Indeed, over the past five years, Bitcoin's price in dollars has increased by 150%.

During certain periods, the cryptocurrency's prices have moved in tandem with gold, such as during the banking crisis in the U.S. in 2023. However, for the most part, Bitcoin's dynamics correlate with other volatile assets, particularly tech stocks.

“In certain scenarios, it exhibits safe-haven characteristics, but fundamentally it remains a risky asset rather than 'digital gold,'” Kenny believes.

Tim Sun, a senior researcher at HashKey Group, pointed out another factor related to liquidity. He noted that the issue with the 'digital gold' concept lies in the differing pricing logic.

Investors in precious metals focus on macroeconomic imbalances and sovereign credit risks. In contrast, Bitcoin remains sensitive to high-frequency trading and leverage use. Those hedging against global economic risks do not turn to the digital asset, Sun added.

It was leveraged trading that hit Bitcoin hard in October when, shortly after reaching a peak of $126,080, a wave of liquidations totaling a record $19 billion led to a sharp price drop. Since then, the cryptocurrency has struggled to regain its footing, mostly trading below $100,000.

In recent months, some experts, including former BitMex CEO Arthur Hayes, have promoted Bitcoin investments as “devaluation trading”—a hedge against fiat currency devaluation. However, in January, gold and silver surged amid a weakening dollar, while cryptocurrency lagged significantly behind.

What’s Next for the Role of a Global Reserve Currency?

In January, Canadian billionaire Frank Giustra reiterated his criticism of the Bitcoin community for aggressively promoting the digital currency in a cult-like manner.

He noted that active supporters frequently change the narrative based on market conditions. The entrepreneur outlined key milestones in the coin's “identity crisis”:

  • means of payment according to the original vision of Satoshi Nakamoto: the idea failed due to rising fees and low speed;
  • hedge against inflation: during the price surge in 2022, the asset's price fell from $69,000 to $16,000;
  • digital gold: this thesis has been disproven by the current market situation.

“Today is a perfect example of why Bitcoin is not gold. Amid uncertainty surrounding Greenland, the metal surged sharply, while the cryptocurrency fell by the same percentage. One asset is a 'safe haven,' the other is a risky instrument,” Giustra commented.

The potential next narrative for Bitcoin was outlined in January by Binance founder Changpeng Zhao. He stated that the digital asset would replace the dollar as the global reserve currency.

HUGE: Binance founder CZ says, “Bitcoin will become the global reserve currency.” pic.twitter.com/GlhitPnfgt

— Crypto Rover (@cryptorover) January 26, 2026

At the same time, journalist and podcaster Tucker Carlson, during an interview with Euro Pacific Asset Management president and well-known cryptocurrency critic Peter Schiff, also entertained this possibility.

Last year, this was stated by Coinbase CEO Brian Armstrong. He believes Bitcoin will inevitably replace the dollar globally if the U.S. does not address its national debt issue.

This same idea was echoed outside the crypto industry by Larry Fink, CEO of BlackRock, in a letter to shareholders in March. He warned that uncontrolled U.S. debt and rising budget deficits could undermine the national currency's dominance worldwide.

Lastly, ARK Invest founder and CEO Cathie Wood explained Bitcoin's advantages over gold due to its limited supply. Meanwhile, discussions within the community are growing about the potential threat to the digital asset posed by quantum computing.