- Bitmine CEO Tom Lee believes that Bitcoin outperformed inflation more often than the well-known savings asset gold (75% versus 56%).
- Specifically during the conflict in the Middle East Bitcoin showed growth, and gold fell.
- At the same time bitcoin ETF record the inflow of funds, and gold ETF — outflow.
Bitcoin’s positioning as a hedge against inflation has once again come into focus following statements by Bitmine CEO Tom Lee. Speaking at the Futu investment exhibition, he declared, that since its inception, BTC has outperformed inflation 97% of the time, while precious metals have only outperformed inflation 56% of the time over the same period.
Lee added that since 2009 Bitcoin confirms its stability compared to traditional assets.
Indeed, market data during recent geopolitical events shows that BTC and gold perform differently. According to analyst Shanaka Anslem Perera, from February 28 Bitcoin rose by 7-10%, while gold fell by 19%. Prices for the precious metal fell from approximately $5,500 before the conflict began to $4,098 on March 23, and by March 27 they had recovered to $4,377.
According to the World Gold Council and JPMorgan, outflows from exchange-traded funds investing in gold amounted to $7,9 billion, equivalent to 54,8 tonnes. Meanwhile, during the first two weeks of the conflict, net inflows bitcoin ETF exceeded $1,1 billion.
This discrepancy is more related to liquidity conditions and market access than to a direct replacement for gold. 24/7 Bitcoin trading and infrastructure ETF allowed capital to enter markets after hours, when traditional financial systems were less accessible.
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