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Bitcoin vs Gold: Returns, Recognition and India’s Crypto Rules

16 October 20251 min read
BANKING & FINANCEBitcoin vs Gold:Returns, Recognitionand India’s CryptoRules16 October 2025safalsetu.com

Why in the news

Bitcoin outran gold and silver over the year, strengthening its “digital gold” image, while Indian equity indices gave zero return.

Returns compared

AssetPicture
BitcoinUp about 90% year-on-year in USD despite volatility after new US tariffs on China
GoldUp 55%; record $4,000/ounce; 10 g of 24K about ₹1.25 lakh
SilverAbove ₹1.5 lakh/kg

Global milestones

  • 2009: launch. 2021: El Salvador first to make it legal tender.
  • 2024: US SEC approved spot ETFs, including BlackRock and Fidelity.
  • 2025: US created a Bitcoin reserve from seized tokens.
  • Deutsche Bank Research Institute expects central bank holdings this decade, with Bitcoin growing in private reserves and gold dominating official ones.

Bitcoin and gold

Both are scarce (Bitcoin capped at 21 million coins), outside central bank control and used against inflation and currency weakness.

India’s crypto timeline

YearStep
2013RBI’s first caution on virtual currencies
2018RBI barred banks from serving crypto entities
2020Supreme Court overturned the ban
2021Holdings disclosure; draft Crypto Bill proposing ban on private tokens and a CBDC
2022 Budget30% tax on VDAs, 1% TDS
2023Brought under PMLA: KYC, FIU registration

Exam angle

  • Supply cap 21 million; VDA tax 30% plus 1% TDS.

Test yourself

1. Which country first adopted Bitcoin as legal tender?

El Salvador did so in 2021.

2. What is the maximum supply of Bitcoin mentioned in the notes?

Bitcoin is capped at 21 million coins.

3. What tax did India's 2022 Budget impose on virtual digital assets?

A 30% tax plus 1% TDS was imposed on VDAs.