Here’s Why Bitcoin is a Better Scarce Asset Than Gold: Ark Invest's Cathie Wood
Cathie Wood argues that Bitcoin’s mathematically fixed supply makes it a superior scarce asset to gold, especially as institutional demand rises. While gold surged 65% in 2025 and has rallied 166% since 2022, Wood attributes this to global wealth creation outpacing gold’s supply growth, not inflation. Gold miners can increase output if prices rise, but Bitcoin’s supply growth is algorithmically limited (~0.82% per year, dropping to ~0.41% after 2026), making its supply far more inelastic. This means that increased demand, such as from spot ETF inflows, could have a stronger price impact on Bitcoin than on gold. Other analysts echo this thesis, noting Bitcoin’s historically higher growth and pricing power when capital rotates into hard assets. Wood also highlights that the gold/M2 supply ratio is at a historical extreme, usually followed by strong equity returns. Additionally, the low correlation between Bitcoin and gold provides a diversification benefit, making Bitcoin attractive for allocators seeking higher risk-adjusted returns. Overall, gold offers stability, while Bitcoin provides asymmetric upside, and both can play distinct roles in a portfolio.
