- Today
- Holidays
- Birthdays
- Reminders
- Cities
- Atlanta
- Austin
- Baltimore
- Berwyn
- Beverly Hills
- Birmingham
- Boston
- Brooklyn
- Buffalo
- Charlotte
- Chicago
- Cincinnati
- Cleveland
- Columbus
- Dallas
- Denver
- Detroit
- Fort Worth
- Houston
- Indianapolis
- Knoxville
- Las Vegas
- Los Angeles
- Louisville
- Madison
- Memphis
- Miami
- Milwaukee
- Minneapolis
- Nashville
- New Orleans
- New York
- Omaha
- Orlando
- Philadelphia
- Phoenix
- Pittsburgh
- Portland
- Raleigh
- Richmond
- Rutherford
- Sacramento
- Salt Lake City
- San Antonio
- San Diego
- San Francisco
- San Jose
- Seattle
- Tampa
- Tucson
- Washington
University of Virginia Today
By the People, for the People
Bitcoin Plunge Casts Doubt on 'Digital Gold' Claim
Enthusiasts struggle to convince investors that Bitcoin is as reliable as traditional gold.
Published on Feb. 13, 2026
Got story updates? Submit your updates here. ›
The recent steep decline in Bitcoin's value, which at one point erased all of its gains since 2024, has raised questions about its viability as a digital alternative to gold. While Bitcoin's advocates have long touted it as 'digital gold' due to its limited supply, its volatile trading pattern and lack of widespread acceptance as a means of payment have made it a less reliable store of value compared to the traditional precious metal.
Why it matters
The divergent performance of Bitcoin and gold in recent years has implications for investors seeking alternatives to the U.S. dollar. Gold has set new record highs, bolstered by increased central bank and retail demand, while Bitcoin's value has plummeted, casting doubt on its status as a digital safe haven.
The details
Bitcoin's supply is constrained by an algorithm that decreases the new supply by 50% every four years, a process known as a 'Bitcoin halving.' This is meant to approximate the rate at which commodities like gold are mined. However, Bitcoin has experienced periodic selloffs since its launch in 2009, with analysts noting that the latest cycle differs from previous peaks driven by widespread retail speculation.
- Bitcoin was launched in 2009 amid the global financial crisis.
- Bitcoin experienced huge gains the year before a halving, the year during one, and the following year, before dropping by 60% or more on average before rebounding.
- The current selloff of Bitcoin is consistent with the historical pattern of post-halving cycles.
The players
Bitcoin
A decentralized digital currency that was launched in 2009 and has been touted by its advocates as 'digital gold' due to its limited supply.
Gold
A traditional precious metal that has long been considered a reliable store of value, with a price history that is less volatile than Bitcoin's.
What they’re saying
“This cycle topped on apathy rather than euphoria, which suggests that faith in Bitcoin and other crypto currencies may be fading.”
— Benjamin Cowen, Analyst (thehill.com)
The takeaway
The divergent performance of Bitcoin and gold in recent years has raised doubts about Bitcoin's viability as a digital alternative to the traditional precious metal. While Bitcoin's advocates have long touted it as 'digital gold,' its volatile trading pattern and lack of widespread acceptance as a means of payment have made it a less reliable store of value compared to gold, which has set new record highs amid increased central bank and retail demand.
