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World’s largest cryptocurrency Bitcoin is being viewed as a stronger hedge against inflation after Bitmine CEO Tom Lee said the asset has outperformed inflation 97% of the time, better than gold.
He also pointed to growing institutional interest, saying Ethereum could benefit from Wall Street tokenization and AI-driven infrastructure development.
Bitcoin Outperforms Gold as Inflation Hedge
Speaking at the Futu Investment Exhibition, Tom Lee said that many investors still trust gold as the safest asset during inflation. However, historical data show gold has not always protected wealth as people believe.
He said that in the last 55 years, gold has underperformed inflation about 48% of the time. This means gold did not always protect purchasing power, despite widespread belief it rises during periods of economic uncertainty.
Over the past week, gold prices dropped over 15%, marking a sharp decade decline, now trading around $4,493 approximately.
On the other hand, Bitcoin has performed much better against inflation since its creation in 2009. According to Lee, Bitcoin has outperformed inflation 97% of the time, which makes it one of the strongest modern inflation hedges.
Lee said, “Many investors hold large amounts of gold for protection, but may be missing exposure to Bitcoin. With its fixed supply of 21 million coins and increasing adoption, Bitcoin is increasingly seen as digital gold.”
Institutional Adoption and ETF Demand Strengthen Bitcoin’s Case
Institutional demand through ETFs and corporate treasury allocations has also strengthened Bitcoin’s position.
Since the launch of Bitcoin ETFs, about $56 billion has flowed as asset managers increasingly added Bitcoin to portfolios globally. This shift is gradually moving Bitcoin from a speculative asset to a macro hedge similar to gold.
As of now, Bitcoin is trading around $66,000, after a 3.4% drop in the last 24 hours
Ethereum and Wall Street Tokenization Opportunity
Further, Lee also spoke about Ethereum and said Ethereum could become very important for Wall Street in the future. He believes Ethereum could be used for tokenization, settlements, and financial infrastructure.
This shows that the crypto industry is slowly moving from speculation to real financial use cases.