Bitcoin outlook points to lower volatility as asset seeks to challenge gold

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Bitcoin challenges gold volatility

Highlights

Ammous argued on X that Bitcoin can act as money and could exceed gold’s market capitalization as its volatility decreases.
Bitwise predicts Bitcoin could reach $1 million by 2029, but its current $1.6 trillion market cap must grow at least 18-fold to match gold’s $29 trillion.
Blockstream CEO Adam Back stated in April 2025 that Bitcoin may rival gold as a monetary hedge amid global financial instability and rising fiat inflation.

Monetization debate centers on volatility and scale

As reported by Cointelegraph, Ammous said in a Tuesday X post that Bitcoin can serve as a medium of exchange as it becomes less volatile than gold and eventually exceeds the precious metal's market capitalization.

He argued that holding Bitcoin already amounts to using it as money, adding that limited use in everyday payments does not undermine the broader monetization process. His remarks respond to criticism from Professor Lawrence H. White, whose book “Better Money: Gold, Fiat, or Bitcoin?” argues that Bitcoin's fixed supply leaves it too volatile to act as a reliable exchange medium.

White wrote in a Monday X post that, without a supply response to swings in demand, Bitcoin remains too unstable for users seeking dependable purchasing power. He also said that this feature helps explain why stablecoins have captured more transaction volume.

Market size remains far below gold

Support for the view that Bitcoin could one day rival gold is also coming from other industry figures. In May 2025, Bitwise head of European research André Dragosch told Cointelegraph that the firm's internal forecast sees Bitcoin reaching $1 million by 2029, a level that would bring its market value in line with gold.

For now, the gap remains wide. Bitcoin's market capitalization stands at about $1.6 trillion, meaning it would need to expand by at least 18-fold to overtake gold's roughly $29 trillion valuation and become the leading global asset.

In April 2025, Blockstream CEO Adam Back also said Bitcoin is likely to begin rivaling gold's monetary hedge role, citing global financial instability and rising fiat inflation. Those views reinforce a broader industry narrative that Bitcoin's long-term investment case increasingly depends on scale, adoption and reduced price swings.

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