Should I sell Bitcoin to buy gold at this time?

According to market analyst, educator, and Bitcoin advocate – Matthew Kratter, the value of Bitcoin (BTC) will outperform gold in the long term. He recommends that investors holding BTC should not sell to switch to gold, even if the price of gold skyrockets above 4,000 USD/ounce.

Kratter argues that Bitcoin is a superior store of value based on characteristics such as scarcity, portability, verifiability, divisibility, and many other distinctive features of currency. He emphasizes:

“The supply of gold has continuously increased by 1-2% each year for many decades, even for centuries. Although this rate seems small, in the long run, it causes the total amount of gold on the market to double every 47 years.”

The movement of gold prices, represented by traditional price candles, and the movement of BTC (in orange) shows a significant divergence in 2025 | Source: TradingViewKratter also warns that the supply of gold could spike if large untapped gold mines are discovered, which still lie deep underground or even in space.

He cited historical examples: The new gold rush from America that flooded into Europe in the 16th century caused severe inflation, contributing to the collapse of the Spanish and Portuguese empires due to the enormous amount of gold that suddenly appeared on the market.

Currently, experts are still debating whether gold or Bitcoin is the optimal store of value and means of payment. Supporters of Bitcoin argue that BTC is a necessary advancement in the evolution of currency, while gold proponents claim that Bitcoin is still too new and volatile to be a safe store of value.

Gold faces many inherent limitations and is unlikely to become a monetary foundation in the digital age.

Kratter stated: “The transportation and insurance for large volumes of gold is extremely costly, making gold a very ineffective tool for balancing international trade.”

He also mentioned that moving even a small amount of gold through airports or highly monitored environments is already difficult, and transporting large quantities is nearly impossible.

Comparing the characteristics of spot Bitcoin and physical gold | Source: CointelegraphThe physical nature of gold makes it unsuitable for online financial transactions or transferring value in digital space. Gold cannot be sent over the Internet, while crypto gold products – that is, physical gold held by a third party and represented on the blockchain – carry counterparty risks.

Kratter points out risks such as the issuing organization potentially creating more gold tokens than the actual amount of gold stored, refusing to exchange digital tokens for physical gold, or the possibility of the government confiscating the reserve gold.

Mr. Teacher