On March 6, 2025, U.S. President Donald Trump signed an executive order establishing a Bitcoin strategic reserve and digital asset pool for the U.S. government. In this executive order, Trump refers to the idea that Bitcoin is similar to "digital gold."
Cryptocurrency enthusiasts often refer to Bitcoin as "digital gold" and consider the two to be equivalent solid currencies. In reality, gold and Bitcoin differ quite a bit in terms of their asset quality and their hierarchy as a solid currency.
Digital assets vs. real assets
According to Investopedia , a digital asset, such as Bitcoin, is generally anything digitally created and stored, that is identifiable and detectable, and that has or provides value. And a real asset, like gold, has a tangible form and much of its value derives from its unique physical qualities.
Bitcoin, the most popular digital asset over the last decade, is often a speculation used as a means to acquire more fiat currency (Federal Reserve Notes, i.e. dollars).
Gold, the most popular real asset for five millennia, is primarily used to diversify savings and as a primary asset for central banks, financial institutions and individuals seeking a steady hedge against inflation.
Although there is currently no gold standard, almost every central bank in the world uses gold as a method of fiat currency stabilization, inflation hedging, geopolitical safeguarding and foreign exchange (FOREX) risk reduction.
Why is gold more valuable than Bitcoin?
Real assets tend to be more valuable compared to digital assets due to factors such as historical precedence, safety and utility.