Author: Bitcoin Will Become Less Volatile Than Gold
BITmarkets Team
Oct 26, 2026
In a post on X, Ammous suggested that Bitcoin (BTC) could become more widely accepted as a medium of exchange as its volatility declines, potentially falling below that of gold if Bitcoin eventually surpasses the precious metal in market capitalization. His comments challenge the argument that Bitcoin's price fluctuations prevent it from functioning effectively as money.
Saifedean Ammous defends Bitcoin's role as money
Ammous maintained that Bitcoin's monetary adoption should not be measured exclusively by how frequently it is used for everyday purchases. Instead, he argued that holding Bitcoin as a form of savings or stored value represents an important part of its development as a monetary asset.
“Holding Bitcoin is using Bitcoin as money, and its lack of widespread use as a method of payment is no evidence against its monetization unfolding,” added Ammous. His position suggests that Bitcoin can continue developing monetary characteristics even without achieving widespread adoption for routine payments.
Ammous also indicated that Bitcoin's volatility could decrease as its market capitalization expands, potentially making it more suitable for transactions over time.
Economists debate Bitcoin's volatility and payment utility
Ammous's remarks came in response to arguments presented by economics professor Lawrence H. White in his book Better Money: Gold, Fiat, or Bitcoin? White questioned Bitcoin's suitability as a medium of exchange, arguing that its predetermined supply prevents the market from responding to changes in demand through adjustments in the quantity of Bitcoin available.
“With no supply response to demand swings, BTC’s price is too volatile for people who want a reliable medium of exchange,” White wrote in a Monday post on X, referring to the sixth chapter of his book.
White also suggested that this limitation helps explain why stablecoins have “eaten BTC’s lunch transaction volume.” His argument highlights the distinction between Bitcoin's use as a long-term investment or store of value and its practicality as a payment instrument.
Stablecoins, which are generally designed to maintain a relatively stable value against currencies such as the US dollar, have gained traction in cryptocurrency payments and transfers. The disagreement between Ammous and White reflects a broader debate over whether Bitcoin's monetary development depends primarily on its adoption as a savings asset or its usefulness in everyday transactions.
Bitcoin would need significant growth to surpass gold
Several cryptocurrency industry figures have previously suggested that Bitcoin could eventually rival or exceed gold in market capitalization. In May 2025, André Dragosch, head of European research at Bitwise, discussed the firm's internal forecast projecting that Bitcoin could reach $1 million per coin by 2029.
According to that projection, such a price would bring Bitcoin's total market capitalization approximately in line with gold's. However, a substantial increase would be required for Bitcoin to reach that level. With Bitcoin's market capitalization at approximately $1.6 trillion and gold's estimated value approaching $29 trillion, Bitcoin would need to increase more than 18-fold to overtake the precious metal.
Other industry executives have also expressed confidence in Bitcoin's long-term potential as an alternative monetary asset. In April 2025, Blockstream CEO Adam Back predicted that Bitcoin would increasingly compete with gold as a hedge against monetary instability.
Back pointed to global financial uncertainty and rising inflation in traditional currencies as factors that could strengthen demand for Bitcoin as a store of value. While these forecasts remain speculative, they illustrate the continuing discussion surrounding Bitcoin's potential role in the global financial system.
For Ammous, Bitcoin's limited adoption as a payment method does not necessarily undermine its progress toward becoming a widely recognized monetary asset, particularly if its market capitalization expands and price volatility decreases over time.
Sources:
https://cointelegraph.com/news/bitcoin-less-volatile-larger-gold-bitcoin-standard-author
