Despite the growing popularity of Bitcoin and other cryptocurrencies in recent years, supported by trading through exchange-traded funds (ETFs), central banks and asset allocation institutions continue to favor gold for their reserves and trading purposes. This trend became more pronounced in 2025, driven primarily by factors such as liquidity, ease of trade, and strengthened confidence. Gold is regarded as an ancient and stable investment, serving as a reliable safe haven within the global financial system. In contrast, crypto assets like Bitcoin remain subject to high price volatility and have limited acceptance, especially among government and international financial institutions. Central banks require stable and trustworthy assets for their foreign exchange reserves, which explains their preference for gold.
Gold also plays a vital role in global trade, particularly during times of international instability or financial crises. It is readily sellable like cash and maintains relatively stable prices in global markets, making it useful for international commerce. Conversely, cryptocurrencies face challenges such as sudden price fluctuations and legal complexities that restrict their use. Although technical advancements and global acceptance of cryptocurrencies are increasing, financial institutions in 2025 prioritize greater security and stability in their investments, giving gold an edge over Bitcoin. This trend is expected to continue, especially amid uncertain global economic conditions and growing demands for financial stability.
Source: coindesk
