Bitcoin is often called “digital gold” because it shares many characteristics with physical gold, especially as a store of value and hedge against inflation. Like gold, Bitcoin is scarce—only 21 million coins can ever exist. This limited supply creates rarity, which helps preserve its value over time, unlike traditional currencies that can be printed in unlimited amounts by central banks.

Another reason for the comparison is durability and portability. Gold is hard to destroy but difficult to transport or divide, while Bitcoin can be transferred instantly across borders and divided into tiny units called satoshis. This makes it easier to use and trade globally without the limitations of physical storage.

Bitcoin also serves as a decentralised asset, meaning it is not controlled by any government or institution. This independence appeals to investors who seek protection from economic instability or political control, similar to those who historically invested in gold.

Moreover, both assets often attract attention during financial uncertainty. When stock markets fall or currencies lose value, investors sometimes turn to Bitcoin just as they would to gold. While Bitcoin’s price can be volatile, its long-term potential as a hedge and value store supports its reputation as “digital gold”—a modern, technology-based alternative to traditional precious metals.