As US Dollar Weakens, Bitcoin Drastically Outpaces Precious Metals—But the Debate Rages On

The greenback is experiencing its worst performance in a decade, with the US Dollar Index (DXY) sliding nearly 10% throughout 2025. This currency deterioration, combined with accommodative Federal Reserve policies, has reignited a fierce debate among investors about which scarce assets deserve a place in their portfolios. While precious metals have surged to historic highs—gold touching roughly $4,533 per ounce and silver approaching $80 per ounce—Bitcoin’s price performance tells a starkly different story.

The Widening Performance Gap Since 2015

The numbers speak volumes. Bitcoin has delivered a staggering 27,701% return since 2015, drastically overshadowing precious metals over the same period. Gold managed just 283% appreciation, while silver achieved 405% gains—leaving both far behind the cryptocurrency’s explosive trajectory. Analyst Adam Livingston highlighted this disparity in recent commentary, noting that even if you exclude Bitcoin’s early years, “gold and silver drastically underperform the apex asset.”

This argument immediately drew criticism from gold advocate Peter Schiff, a long-standing Bitcoin skeptic. Schiff countered that the comparison timeframe matters, suggesting a four-year analysis would paint a different picture. “Times have changed. Bitcoin’s time has passed,” he argued, reflecting the persistent disagreement between precious metals enthusiasts and cryptocurrency proponents about long-term value preservation.

Why Precious Metals May Never Match Bitcoin’s Economics

Matt Golliher, co-founder of Orange Horizon Wealth, a Bitcoin-focused wealth management firm, offered a compelling explanation for this performance divergence. Commodity prices, he explained, naturally “converge” toward production costs over extended periods. When prices rise, mining becomes more profitable, prompting producers to increase extraction. This expanded supply typically pushes prices back down—unless, crucially, the asset has a truly fixed supply.

“There are now sources of gold and silver that were not profitable to bring to market a year ago that are now quite profitable at current prices,” Golliher noted. This supply elasticity fundamentally distinguishes precious metals from Bitcoin, whose 21-million-coin cap remains immutable by design. While inflation of precious metals supply can moderate price gains, Bitcoin’s scarcity mechanic provides an asymmetric advantage.

The Catalyst: Dollar Weakness and Monetary Easing

Beyond the supply dynamics, macro conditions are favoring scarce assets broadly. Analyst Arthur Hayes has emphasized that the combination of dollar depreciation and ongoing Fed easing will likely drive prices higher across gold, silver, and Bitcoin alike. As the dollar loses purchasing power, investors increasingly seek alternatives that cannot be devalued through monetary expansion.

The irony is palpable: as precious metals hit all-time highs, Bitcoin remains the asset that has drastically outdelivered on the promise of value preservation. Yet the debate between competing store-of-value narratives shows no signs of cooling—especially as geopolitical tensions, currency instability, and inflation concerns keep both crowds convinced they back the winning hedge.