"Bitcoin, overwhelming gold and silver since 2015"…Reignited debate over store of value

Bitcoin (BTC) has recorded returns over the past decade that far exceed those of gold and silver, an analysis shows, reigniting the debate over long-term stores of value.

On the 29th (local time), Cointelegraph reported that crypto asset (cryptocurrency) analyst Adam Livingston said on social media that "since 2015 Bitcoin's gains reached 27,701%" and "over the same period silver rose about 405% and gold rose 283%." He noted that "even excluding Bitcoin's first six years, gold and silver lag Bitcoin significantly in terms of returns."

In response, prominent gold advocate Peter Schiff rebutted that the comparison period was inappropriate. He argued, "The comparison should be based on the last four years," and claimed, "The environment has changed, and the era of Bitcoin is over."

Meanwhile, Matt Goliher, co-founder of Bitcoin asset manager Orange Horizon Wealth, pointed to structural limits in commodity pricing. He explained, "Commodities like gold and silver tend to converge to production costs over the long term," and "when prices rise, supply increases and pushes prices down again."

Goliher added, "Recent price increases have allowed previously unprofitable gold and silver mines to enter the market," and "increased supply can limit the price upside." He argued this is a fundamental difference from Bitcoin, whose issuance is fixed.

Recently, while gold and silver prices have surged to record highs, Bitcoin has shown a stagnant trend, and with the dollar's value falling by about 10% against major currencies, the debate over relative attractiveness among assets appears to be widening. Market analysts say that, apart from short-term price movements, supply structure and long-term supply-demand characteristics could act as key variables in future evaluations of store-of-value instruments.