Over the past decade, Bitcoin and Gold have been two of the most monitored alternative assets. Gold which has thousands of years of history and has been widely considered a safe asset. Bitcoin which is referred to as “digital gold,” shares the scarcity but as a digital asset which is secured through new technology known as blockchain.
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Looking closely at the last 10 financial years when comparing Bitcoin and Gold's performance, the past decade has shown many different financial situations.
Gold which at the end of the 2015 financial year closed at $1,450 AUD then in the 2025 financial year closed at $4,900 AUD per ounce - a 239% increase in 10 years. The compound Annual Growth Rate (CAGR) of Gold was 13.3%.
Gold had many surges in its price through many different economic struggles through the COVID-19 pandemic and the uncertain inflationary period that followed. Gold proved to be a great asset to hedge against inflation and was a safe investment as a store of value.
Bitcoin’s performance over the past 10 financial years has been exponential. At the end of the 2015 financial year, Bitcoin closed at A$591.84 per BTC, and by the end of the 2025 financial year it had risen to A$162,837.40 per BTC a total increase of about 27,424%, with a compound annual growth rate (CAGR) of approximately 87%. Over this period Bitcoin has also proven to maintain its growth and recover after major economic events.
While Bitcoin has produced higher returns than gold, this came with high volatility for investors; however, in comparison to gold, which has continued to steadily increase with less volatility. Both assets performed well, but there is more to an asset than price performance.
Although Bitcoin and Gold are seen as similar due to their scarcity, they both have many distinct characteristics that make them different.
The main investment risk of Bitcoin is the high volatility. Bitcoin’s value in recent times has moved by high percentages in short time frames. This volatile nature is due to global geopolitical news, macroeconomic trends and adoption rates. Security can also be a potential issue to consider for investors, as losing your private keys or using an unsecure platform, all your holdings are at risk of being lost with no way to retrieve the funds.
This is why, to secure your holdings and not be at risk of losing your investment, selecting Elbaite as your provider will make investing in Bitcoin a safer task.
Regulation for BTC is very unclear in Australia currently; it’s legal to buy, sell and hold cryptocurrency. All exchanges need to register with the Australian Transaction Reports and Analysis Centre (AUSTRAC) for anti-money laundering (AML) compliance. Regulatory developments are expected to be clearer in the near future.
Globally, countries and institutions are beginning to take a positive approach to cryptocurrency, and Australia will look to follow suit soon.
Gold has often been seen as a low-volatility asset, but prices are easily influenced by interest rates, global demand and currency fluctuations. Holding physical gold can be a risk due to the potential of theft, loss and damage. However, purchasing gold through traditional platforms is seen to be safe and often seen as an asset for investors due to economic uncertainty
Regulation for the gold sector is well established. The trading of gold is overseen by commodity exchanges and bullion dealers. In the event of products such as ETFs, it is looked at by the Australian Securities and Investments Commission (ASIC). In relation to the global market of gold, there are strong regulatory frameworks to maintain standards in major areas such as New York and London.
Bitcoin and Gold are traded frequently and, through different markets, can be highly liquid.
Gold can be accessed by many different streams, which include bullion dealers, exchanges, ETFs, and futures. There are two options to purchase; either physically or through financial markets, which track its price in real time. While there are situations when the entry for gold can be low, it still requires a decent amount of capital for an investor (ranging from $300 starting point).
Bitcoin is accessible to anyone who can access the internet and can be obtained in small amounts. Investors can enter the market with as little as $10 AUD. It can be traded globally through DCEs (digital currency exchanges), and since the development of Bitcoin ETFs the asset can be accessed on traditional finance brokerage platforms other than DCEs.
Even though both of these assets appear to be highly accessible, it’s good to note that Gold can have a minimum entry price on different platforms, while with Bitcoin, you can enter with $10 AUD.
Gold, which is considered liquid in the financial markets around the globe through established trading structure. However, physical gold needs to be verified before sale and can take time for the transaction to take place.
There are also some additional costs, for example, the price of an ounce is $4,900, but after a $100 buy-back spread, the dealer offers $4,800. The investor may have also paid $50 annually for storage and insurance, which will then reduce the return on the sale after these costs
Bitcoin offers efficient settlements on crypto exchanges. Markets are also open 24/7, with fees around transactions below 1%, which can vary on the platform you are trading on. Liquidity is high, and you can sell a fraction of your holding into AUD very easily, but depending on market conditions and volatility there might be periods of low depth in the market.
Bitcoin and Gold have responded differently to different conditions such as interest rates, market sentiment which overall displays their market roles.
Gold has seen to be a defensive asset during times of economic uncertainty. An example of this was during the COVID-19 pandemic in 2020. Gold had a quick response and reached a record high as investors looked for assets with safety. Again, through the 2022-2023 inflation period, gold appreciated again as the demand increased within central banks.
Gold's price has been closely tied to monetary policy, real yields and has been seen to perform through low or falling interest rates.
Bitcoin has a very mixed profile compared to gold. Initially, during the pandemic, Bitcoin fell 50% alongside equities. However, it rebounded strongly and gained 300% the next 12 months as global incentives boosted the high-risk assets. Now, again in 2024-2025 Bitcoin has another surge that was driven by positive change with institutional adoptions and a major launch of Bitcoin ETFs in the USA, which created massive capital growth to Bitcoin.
Gold's macroeconomic role has been established and it has a long history of withstanding downturns economically. Bitcoin’s price has been influenced by liquidity cycles and risk appetite. However, with creator adoption and institutional involvement, it could potentially cause volatility and strengthen consistency for the asset long term.
Looking into the outlook of both these assets, Gold will look to maintain its position due to being a low risk asset. There is high confidence it may have a steady increase due to central bank holdings and continued accumulation of Gold, which also secures its long-term future.
The Bitcoin outlook is very exciting, as we are seeing more global adoption and potential for clearer regulations. We are also expecting Bitcoin volatility to start to steady out as with the emergence of Bitcoin ETFs and Institutional adoption which now creates the future of Bitcoin to be unlimited. As we see volatility decrease, the growth will become more stable and more risk-adverse.
Gold now remains as a proven store of value with a history of thousands of years. The stability, low volatility and demand for investors and central banks. Even though the returns are lower than high risk investments, gold has been able to preserve wealth for investors even through economic uncertainty, making it an important asset for a diverse portfolio.
Bitcoin has had extraordinary growth over the past 10 years, which has been due to it’s scarcity, decentralization and acceptance by institutional and retail investors. High short term volatility in the short term, as price is tied through market sentiment, global liquidity and regulatory developments. Bitcoin has offered exposure to a digital asset with significant potential to investors.
Author: Ben Bland
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Elbaite Pty Ltd (ACN 623 185 875) operates a digital currency exchange registered with AUSTRAC. Please note that digital asset prices can be volatile. We will never ask for the private keys to your digital currency wallet. Elbaite is not liable for any losses you may incur, and you are solely responsible for your investment decisions. Before deciding if our services are right for you, take into consideration your own financial situation & needs and/or obtain professional financial or taxation advice from a licensed provider. Elbaite does not provide financial advice and Elbaite does not have any affiliation with external traders, advisors or trading platforms.
