Bitcoin vs Gold: Returns, Recognition and India’s Crypto Rules
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
| Asset | Picture |
|---|---|
| Bitcoin | Up about 90% year-on-year in USD despite volatility after new US tariffs on China |
| Gold | Up 55%; record $4,000/ounce; 10 g of 24K about ₹1.25 lakh |
| Silver | Above ₹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
| Year | Step |
|---|---|
| 2013 | RBI’s first caution on virtual currencies |
| 2018 | RBI barred banks from serving crypto entities |
| 2020 | Supreme Court overturned the ban |
| 2021 | Holdings disclosure; draft Crypto Bill proposing ban on private tokens and a CBDC |
| 2022 Budget | 30% tax on VDAs, 1% TDS |
| 2023 | Brought under PMLA: KYC, FIU registration |
Exam angle
- Supply cap 21 million; VDA tax 30% plus 1% TDS.