Trump 2.0: Bitcoin can be a smarter investment than gold in 2025

Dubai: Gold has long been considered the ultimate safe haven, a hedge against uncertainty and economic turmoil. Meanwhile, Bitcoin, often dubbed "digital gold," has emerged as a disruptor, promising growth.

But with a Trump-fueled rally injecting fresh momentum into financial markets, investors are asking: Does this make Bitcoin a better asset than reliable gold?

Historically, Trump’s policies and rhetoric have influenced both traditional and modern assets. The president-elect’s return has not only sparked significant market rallies, particularly in stocks, but it  is also currently reigniting debates around economic policies, inflation, and market regulation.

A rally driven by such dynamics could benefit Bitcoin in several ways:

· Increased appetite for risk assets

Bitcoin thrives during periods of speculation and risk-taking, as its high volatility attracts traders seeking quick returns.

· Hedge against inflation

Trump-era policies often emphasised fiscal stimulus, potentially fueling inflation fears. Bitcoin, like gold, is seen as a hedge against inflation due to its limited supply.

· Decentralisation appeal

Bitcoin’s decentralised nature aligns with libertarian ideologies, making it particularly appealing during politically charged times.

Gold, on the other hand, benefits from its reputation as a safe haven in times of crisis. However, in a rally driven by optimism or speculative fervor, gold’s steady nature may seem less attractive compared to Bitcoin's dynamic growth.

Bitcoin’s growth potential remains unparalleled, particularly as it gains institutional adoption.

"Gold’s enduring appeal lies in its track record and resilience," says Brody Dunn, an investment manager at a UAE-based advisory firm. "But it doesn’t offer the explosive growth or versatility seen in Bitcoin."

"Bitcoin’s fixed supply and increasing acceptance as a legitimate asset make it a unique opportunity. Trump’s influence may spark a renewed interest in crypto markets, which have historically benefited from policy uncertainty and fiscal expansion."

It is better suited for preserving wealth rather than generating significant returns.

· Volatility and risk

Gold’s stability makes it ideal for risk-averse investors. Conversely, Bitcoin’s volatility can lead to significant gains—or losses—in short timeframes.

"Volatility is a double-edged sword," notes Brian Deshell, a UAE-based cryptocurrency analyst. "While Bitcoin can skyrocket in value during speculative rallies, like those fueled by Trump’s policies, it also carries the risk of sharp corrections."

· Hedge against uncertainty

Both gold and Bitcoin act as hedges, but in different ways. Gold protects against systemic risk, while Bitcoin appeals as a hedge against monetary manipulation and inflation. With Trump potentially influencing markets again, Bitcoin’s decentralized nature may resonate with investors wary of centralised control.

A Trump-fueled rally amplifies Bitcoin’s allure for investors seeking growth in a speculative environment. Unlike gold, Bitcoin benefits from political and economic narratives that promote innovation, decentralization, and resistance to traditional financial systems.

However, gold’s timeless appeal as a safe haven remains strong. While it may not offer the same dramatic returns, its low volatility provides a foundation for portfolios during uncertain times.

The answer depends on your financial goals and risk tolerance:

If you favor stability: Gold remains a reliable store of value, ideal for preserving wealth through economic cycles.

If you seek growth during speculative rallies: Bitcoin’s dynamic nature and high returns could capitalize on the momentum of a Trump-fueled rally.

For many investors, a balanced approach might be best. Allocating a portion of your portfolio to both assets allows you to benefit from Bitcoin’s potential for high returns while maintaining the security of gold.

Ultimately, whether you choose Bitcoin or gold, staying informed and understanding the broader market context—especially during politically charged periods—is key to making smart investment decisions.