Bitcoin and gold: The power couple for smarter portfolios

Earlier this month, we talked about why Bitcoin deserves a spot in your portfolio and how it can make a difference. Now, we’re taking it up a notch. Let’s explore what happens when you combine Bitcoin and gold to power up your investments.

At first, Bitcoin and gold might seem completely different. Gold has been used for thousands of years as a reliable means of storing value, something people turn to during uncertain times. Bitcoin, on the other hand, is a relatively new digital form of money that’s known for price fluctuations.

However, in today’s world, where factors such as inflation, unstable governments, and global tensions are causing widespread anxiety, both gold and Bitcoin are becoming increasingly intertwined. Together, they’re starting to act like a strong team, and you may even call them a “power couple” in the world of investing.

But why Bitcoin and gold?

Bitcoin is often referred to as “digital gold.” Like gold, it’s seen as a safe place to store value, especially during uncertain times. And like gold, Bitcoin isn’t controlled by any one government, bank, or company. 

But Bitcoin goes even further.

There will only ever be 21 million Bitcoins, and about 95% of them have already been mined. This limited supply makes Bitcoin hard to inflate; no one can just make more of it whenever they want. Gold is also limited, but new gold can still be discovered and mined, so its supply isn’t truly fixed the way Bitcoin’s is.

Together, Bitcoin and gold can help build a stronger, more reliable investment strategy. A portfolio that includes both has historically offered:

1. Stronger returns with lower volatility during crises and recoveries
2. Monetary debasement protection with upside capture when risk appetite returns
3. Diversification from structurally low correlation and divergent market reactions

How do Bitcoin and gold perform in the portfolio?

Over the past five years, through various market phases, it has become clear that owning both Bitcoin and gold has been a smart move for many investors.

Phase 1: COVID-19 (2020–2022)

Markets first crashed, then rebounded thanks to government support and additional money in the system. Initially, gold performed better because it’s perceived as a safe asset. Bitcoin plummeted, but later bounced back even stronger. Portfolios that held both gold and Bitcoin performed well; gold helped mitigate losses and volatility during the crash, while Bitcoin contributed to boosting gains during the recovery.

Phase 2: Quantitative tightening (2022–2024)

When central banks raised interest rates and pulled money out of the system after implementing unprecedented stimulus measures in response to the COVID-19 pandemic, stocks retreated. Bitcoin remained stable for a while, and gold provided some stability. Even though Bitcoin didn’t move much, having it in a portfolio helped investors stay ready for when markets became more willing to take risks again.

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Phase 3: ETF era (2024–present)

The launch of spot Bitcoin ETFs was a game-changer. It made investing in crypto much easier, more accessible, and fully legal for many big investors. At the same time, gold also saw increased demand as people sought safe, tangible assets during uncertain times. Together, Bitcoin and gold have become a powerful combination, with Bitcoin offering strong growth potential and gold providing stability, outperforming most traditional investments.

Bitcoin and gold are better together

Looking forward, gold and Bitcoin still play important but different roles. Gold provides reliable strength that has lasted for centuries, while Bitcoin offers the chance for big gains and easy access through digital platforms. They don’t replace each other; instead, they work together to build a stronger portfolio that’s ready for whatever surprises the future may bring. In a world full of change, Bitcoin and gold aren’t fighting for a place in your investments; they’re earning it together.