Bitcoin doesn't just compete with gold as an alternative store of value—it also rivals all savings instruments, including government securities. According to Hunter Horsley, CEO of digital asset investment firm Bitwise, Bitcoin's total addressable market encompasses the $16 trillion gold market and the $30 trillion US Treasury market used by individual bondholders and institutions for value preservation.
Horsley stated on Friday:
"Bitcoin’s opportunity extends beyond gold to the over $30 trillion market using Treasuries as a store of value."
This commentary responded to economist Mohamed El-Erian’s earlier warning that US Treasury flows no longer reliably indicate investor flight-to-safety behavior.
Why Investors Are Turning to Bitcoin
1. Macroeconomic Hedge
Bitcoin attracts attention as:
- A savings technology alternative
- A gold-like store of value
A hedge against:
- Geopolitical instability
- Macroeconomic shocks
- Risk asset market downturns
2. Drivers of Adoption
Geopolitical tensions and government overspending accelerate Bitcoin adoption as investors seek:
- Inflation protection
- Escape from counterparty risks in fiat systems
US Fiscal Context:
- Trump’s proposed "Big Beautiful Act" may add $2.5 trillion to deficits
- National debt approaches $37 trillion
- Critics like Elon Musk argue current budgets erode long-term fiscal health
Market Reactions (April 2025)
- Bond markets reacted to trade tariffs and debt concerns
- Investors dumped US securities, causing yields to spike
- 10-year Treasury rates remain elevated
👉 How Bitcoin outperforms traditional safe havens
Key Challenges for Treasury Markets
Saifedean Ammous, author of The Bitcoin Standard, noted:
"US fiscal health is dire—Trump’s proposals alarmed bond markets. Significant corrective measures are needed."
FAQs: Bitcoin vs. Traditional Stores of Value
Q: How does Bitcoin compare to gold?
A: Both serve as non-sovereign stores of value, but Bitcoin offers:
- Digital scarcity (21 million cap)
- Portability advantages
- Transparent issuance
Q: Can Bitcoin realistically absorb Treasury demand?
A: Gradually—as institutions like MicroStrategy allocate reserves to BTC, its liquidity and credibility grow.
Q: What risks does Bitcoin face?
A: Short-term volatility remains, though long-term holders benefit from its hardening monetary properties.
👉 Institutional Bitcoin adoption trends
Disclaimer: This article contains no investment advice. All financial decisions involve risk—conduct independent research.
Core Keywords:
- Bitcoin store of value
- US Treasury market
- Geopolitical hedge
- Macroeconomic risk
- Bond market volatility
- Fiscal instability
- Digital gold
- Institutional adoption