Gold has been the go-to "safe haven" investment for centuries. However, 2025 is the year that a new ‘digital version’ of the commodity has started to shine! I’m talking about Bitcoin. The cryptocurrency that has turned pocket change into house deposits and filled headlines with its ability to generate enormous returns (and losses!).
Some are going as far as to say that Bitcoin is the new ‘digital gold’- referring to the crypto’s serious ability to hedge against inflation.
Both gold and Bitcoin have been praised as ways to protect your wealth. Both have die-hard fans. But which one’s right for you?
What Makes Gold So Special?
Let’s start by looking at Gold, the investment that you’re probably the most familiar with! Gold has stood the test of time, literally. It’s been used as a store of value for over 2,000 years. In fact in Roman times it cost an ounce of gold to kit out a Senator in all the clothes and accessories he needed to look good in the Roman Senate. Nowadays an ounce of gold would buy a good suit and accessories for a City gent or MP to look the part at their place of work. And while gold doesn’t pay dividends or interest, it’s trusted to hold its value when things get rocky.
Here are some of the reasons that investors love gold:
● Seen as a reliable hedge against inflation
● Tends to perform well in times of crisis or recession
● Highly liquid and widely accepted
● Less volatile than cryptocurrencies
● Doesn’t attract VAT or CGT (Capital Gains Tax) if you have it in the form of sovereigns
Are there any downsides?
● Doesn’t generate income (no interest or dividends)
● Storage and insurance can be a nuisance and cost (unless you invest via an ETF or through digital platforms)
● Growth is often slow and steady, not exactly thrilling
● Prices can be driven by emotion as much as economics
A Little Bit About Bitcoin
Bitcoin was launched in 2009, and its aim was to be a decentralised currency outside the reach of governments and central banks. It is built on blockchain technology and secured by cryptography, making it pretty secure! Unlike cash, Bitcoin has a deflationary supply, which means that the number of circulating Bitcoins decreases over time, pushing up its value.
Why Is Bitcoin Called “Digital Gold”?
Today, it’s often referred to as “digital gold”, not because it replaces gold, but because it shares one key feature: scarcity. There will only ever be 21 million bitcoins in existence, and this will decrease over time.
Scarcity is a key driver of value and is the main reason that both gold and Bitcoin have managed to maintain their purchasing power over time (unlike cash!).
JASMINE BIRTLES | Jasmine Birtles reveals where smart money is going in 2025
Here’s why some investors love Bitcoin:
● Huge potential for growth
● Easy to buy, store, and sell
● Not controlled by governments or central banks
● You can invest from as little as £1
Drawbacks of Bitcoin:
● Incredibly volatile (10% swings in a day are common)
● Not yet universally accepted as a currency
● Still facing regulation uncertainty
● Easily influenced by hype, tweets, and market mood
GETTY | Scarcity is a key driver of value and is the main reason that both gold and Bitcoin have managed to maintain their purchasing power over time
Bitcoin vs Gold: Head-to-Head
To give you a better idea of how the two assets compare, let’s take a look at Bitcoin and Gold side by side!
Feature | Gold | Bitcoin |
Age & history | Thousands of years | Just over a decade |
Volatility | Low to moderate | High |
Inflation hedge | Proven track record | Still debated |
Liquidity | Very high | High (via exchanges) |
Income | None | None |
Regulation risk | Low | High |
Potential growth | Slow & steady | Fast but volatile |
Accessibility | Physical or ETFs | Online, 24/7 trading |
So… Where Should You Put Your Money?
The truth? It depends on your risk tolerance, goals, and time horizon.
If you’re looking for a safe store of value that’s unlikely to crash overnight, gold is your friend. It’s stable, trusted, and tends to hold up when everything else is falling apart.
If you’ve got a higher risk appetite, a long-term outlook, and don’t mind a bit of drama, Bitcoin could offer explosive growth, but it comes with wild swings and unknowns.
The Best Strategy Might Be Both!
Here’s a thought: you don’t have to choose one over the other.
Many investors are now blending safety with opportunity by holding both Bitcoin and gold. That way, you get the security of gold and the upside potential of Bitcoin, without putting all your eggs in one basket.
Think of it like building a well-balanced meal: gold is your meat and potatoes, Bitcoin is your hot sauce.
GETTY | If you're wondering where to put your cash in 2025, both Bitcoin and gold offer unique benefits
Jasmine Birtles is the founder of MoneyMagpie.com. Get their free investing newsletter here.
Funds like the BOLD fund make it easy to invest in both at the same time- this fund isn’t available in the UK yet, but could be pretty soon, thanks to the FCA lifting the ban on crypto ETNs.
Another great way to invest in both is to use an ETF platform that offers Gold ETFs and crypto ETFs (again, these are slowly rolling out in the UK).
If you don’t feel like going down the ETF route, you can invest in Bitcoin through an FCA-registered exchange, which involves creating an account, adding funds and placing an order.
The best places to buy physical Gold in the UK are certified brokers such as Bullion Club. However, it is also possible to invest in Gold-related stocks through investment platforms.
Final Thoughts
If you're wondering where to put your cash in 2025, both Bitcoin and gold offer unique benefits. The key is not betting everything on a single winner, but building a diversified portfolio that can weather any storm.
As always, do your own research, invest within your limits, and never invest money you can’t afford to lose, especially with crypto.
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