Bitcoin has surpassed traditional benchmarks since 2020, registering profits of over 1,500%, while gold has risen by around 115% and the US dollar index has remained almost flat.
Asset performance divergence reflects periods of recognition of financial expansion, sustained inflation concerns, and the evolution of rare and independent assets as institutional investors and sovereign entities reassessing reserves and portfolio allocations.
Bitcoin has risen from a price level of nearly $7,700 in early 2020 to a high of around $123,164 today.
With BlackRock’s Ishares Bitcoin Trust holdings over 700,000 BTC and over $88 billion under its managed assets, the asset class is increasingly woven into regulated investment products. Facility access is considered to create a price floor while mitigating the volatility traditionally associated with digital assets.
Gold’s upward trajectory continued throughout the same period, rising from around $1,550 per ounce to over $3,300 as geopolitical tensions and inflation protection strategies maintained demand for physical assets.
Meanwhile, the relative value of the dollar to other currencies remains flat after significant volatility, with its purchasing power being cumulatively eroding by an estimated 20% from 2020 to 2025.
The 2020 Covid-19 pandemic and subsequent economic policy responses have encouraged unprecedented expansion of financial supply and financial interventions in modern history, urging market participants to look for stores worthy beyond Fiat.
We are now walking the road towards hyperbitcoinization
The fixed supply and decentralized nature of Bitcoin placed it as both speculative vehicles and potential hedges, and acquired capital from investors diversifying away from the exposure of sovereign currency.
With the acceleration of Bitcoin, many people have been exploring hyper-bitcoinization papers. There, it is possible to replace Fiat currency as a storage for the main medium and value of exchange. While a general analysis maintains this scenario, and will survive soon, today’s environment reflects how the Fiat currency fall begins.
Bitcoin has become a macro asset comparable to gold, rather than an impending replacement for the dollar. The regulatory framework, taxation requirements requiring FIAT settlements, and the economic risks of deflation inherent in the fixed supply currency system remain large hurdles for Bitcoin, which completely replaces traditional currencies.
Nevertheless, institutions and governments have integrated Bitcoin into their financial strategy. As Cryptoslate reports, the Emirate of Abu Dhabi revealed its $439 million position in the Bitcoin ETF. In the US, President Trump has signed an executive order to launch strategic Bitcoin reserves, showing official sector interest in keeping Bitcoin along with traditional reserves.
Compounding the outlook further, the 2025 US trade policy introduced tariffs on its major trading partners, contributing to inflationary pressures, resulting in a decline of around 10% in the annual dollar index. BlackRock CEO Larry Fink warned in an official statement that the risk of financial obligations and dollar behaviour could increase digital assets like Bitcoin as an alternative, and that Bitcoin’s role reflects sentiment from some financial facilities that are moving from speculative assets to strategic preparation.
Currently, the US total debt is rising at $37 trillion, but the dollar is in a volatile position.
However, the surge in facility adoption is consistent with a decline in evidence of grassroots activity. In 2025, on-chain throughput was destroyed several times a day by over 500,000, but Lightning Network capacity has been addicted to around 5,000 BTC since mid-2022.
Additionally, in the past few months, the capacity of around 4,300 BTC has been slightly reduced, according to Mempool.space. The Lightning network is not the only way to move Bitcoin cheaply on-chain, but it is a multitude of layer 1 hosted forms of wrapped Bitcoin that are regularly used across multiple chains.
Transfers below $1,000 make up more than half of the total Bitcoin volume in the chain, pointing to a peer-to-peer settlement rather than an integration of exchanges.
These metrics, combined with ETF inflow, the adoption of the Ministry of Corporate Treasury, the allocation of Abu Dhabi, and the US strategic preliminary order, create photos that match the early stages of hyperbitcoinization, Fiat dilution, stronger Bitcoin prices, and the initial move of daily trading to rival monoterirails.
As lightning and other layers of throughput grow even further, a framework for mass transaction adoption will be introduced, and the role of Bitcoin will shift from hedging on the balance sheet to available money.
That transition is ongoing, but rather than integrating Bitcoin as a technological tool that will revolutionize Tradfi, it focuses on winning Bitcoin.
Still, maybe that’s not what we need right now. If the corporate world relies on Bitcoin for a valuable store, placing that value in a lightning channel to earn yields or staking it to secure other blockchains can be an attractive offer.
From there, using Bitcoin to protect critical infrastructure and building a high-tech stack around Bitcoin’s immutable global time stamp service is the logical next step.
At that point, Bitcoin is not only the highest storage of value, but also the catalyst for securing and integrating its value throughout the digital world.
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