Gold has firmly taken the lead against Bitcoin in 2025, climbing 25% higher as investors seek safety amid global uncertainty. However, Anthony Pompliano, a high-profile crypto investor, made headlines on X by calling gold a “disastrous investment” since 2020.
He stated that the metal had lost 84% of its purchasing power compared to Bitcoin and referred to the cryptocurrency as a “finite sound money asset.”
His statements received a massive backlash from the investment community. Veteran analyst Peter Schiff responded to Pompliano’s timeframe selection, saying that the timeframe was misleading because gold had outperformed both real estate and the S&P 500 since 2020. Others in the market also disagreed with Pompliano’s conclusion, stating that gold’s multi-decade stability was impossible to measure using short-term data.
Gold’s strength this year is due to the ongoing effects of inflation, a declining dollar, and geopolitical tensions. The metal is now on track for its best annual performance since 1979, when global crises drove up commodity prices.
Tether’s dual strategy in Bitcoin and Gold
Despite the ongoing debate, Tether has doubled down on both Bitcoin and gold. CEO Paolo Ardoino said that the company considers the two assets as long-term stores of value. In May 2023, Tether disclosed that 15% of its net realized operating profit would be used to purchase Bitcoin. The firm also has exposure to gold via its tokenized product, Tether Gold (XAUt), which is supported by more than 7.66 tons of physical gold.
Ardoino said both Bitcoin and gold complement each other on Tether’s balance sheet. He dismissed rumors that Tether has decreased its holdings in Bitcoin due to the increase in gold reserves, explaining that both assets are increasing similarly. Ardoino also reported that gold and Bitcoin are seen as inflation hedges, offering a long-term safeguard against devaluation of the currency.
Both assets set record highs in early October 2025, reaching a record $125,000 for Bitcoin and just over $4,000 per ounce for gold. Bitcoin has now stabilized at over 115,000, 5% higher in the last 24 hours, along with an overall market rebound.
Institutions and central banks reassess store-of-value strategies
The trend in the institutional attitude to Bitcoin and gold is also changing. A Bloomberg report cited Deutsche Bank economists Marion Laboure and Camilla Siazon, who said that central banks might come to regard Bitcoin as a new gold. They pointed to the declining confidence in the dollar and rising institutional adoption as triggers to this transition.
Central banks have already increased their gold reserves. The World Gold Council reports that the total global holdings currently stand at approximately 35,200 tonnes, representing a fraction of the total supply of 216,265 tonnes. Other countries that are amassing gold include Poland, China, and Kazakhstan, with some of them, such as Singapore and Germany, cutting back positions.
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