TL;DR
- Cathie Wood argues Bitcoin’s fixed supply makes it superior to gold.
- Bitcoin rose 360% vs gold’s 166% with lower annual supply growth.
- Bitcoin’s mining supply is code-limited, unlike gold’s discovery-based production.
Ark Invest CEO Cathie Wood presented a report comparing Bitcoin to gold. In her 2026 analysis, Wood argues Bitcoin is a superior scarce asset to the precious metal. The basis of her claim lies in the digital asset’s mathematically fixed supply, which she defines as inherently scarce.
Wood compared the performance of both assets. She observed gold recorded an appreciation of 166% with an annualized increase in its global supply of 1.8%. Bitcoin, in contrast, rose 360% with an annualized increase in its total supply of 1.3%. The investor pointed out a crucial difference in supply’s response to price signals.
Gold and Bitcoin Respond Differently to Prices
Gold miners can increase production if they discover new deposits. This supply adjustment mechanism does not exist for Bitcoin. Its protocol sets a maximum limit of 21 million units and a decreasing emission rate. Wood explained Bitcoin’s annual supply increase falls to 0.9% after each halving.
Bitcoin’s mining supply is strictly limited by its code. New issuance is expected to increase approximately 0.8% annually over the next two years. From 2028, annual supply growth is forecast to slow to 0.4%. This predictability contrasts with the discovery-based nature of gold mining.
Wood also highlighted Bitcoin’s role in portfolio diversification. She noted Bitcoin’s correlation with gold is low, at 0.14. Its correlation with bonds is even lower, at 0.06. This profile makes it a source of diversification for asset managers seeking higher returns per unit of risk. The Ark CEO suggested managers have a fiduciary duty to consider crypto assets to optimize returns and risk.
Competitive Pressure from Gold and Future Outlook
Gold’s performance in 2025 generated direct competitive pressure on Bitcoin. The metal advanced 69% for the year, while Bitcoin recorded a 5% decline. This performance raised doubts about the “digital gold” narrative and Bitcoin’s superiority as an inflation hedge.
Bitcoin experienced strong rallies in 2024, so a consolidation phase in 2025 is normal. Experts like Geigii Verbitskii, founder of TYMIO, maintain Bitcoin offers asymmetric upside in the long term, holding a history of faster growth than gold.
Other firms maintain bullish outlooks for Bitcoin, though they adjusted forecasts. Bernstein predicts Bitcoin could reach $200,000 by 2027. Standard Chartered reduced its 2026 prediction from $300,000 to $150,000. Cathie Wood maintains her optimism, previously projecting a price of $1.5 million by 2030, later revised to $1.2 million.
