Why is Bitcoin considered digital gold?

You’ve probably heard us say it: Bitcoin is digital gold. It’s a phrase that’s popping up more and more — but what does it actually mean? How can something you can’t hold in your hands, something made entirely of zeros and ones, represent the same value as a shiny lump of metal?

The answer is surprisingly simple: scarcity.

Gold has been valuable for thousands of years precisely because it’s rare. You can’t just make more of it. It’s buried deep underground, and it takes effort and energy to bring it to the surface. The same principle applies to Bitcoin. There will never be more than 21 million bitcoins. No central bank can print a few extra. No government can suddenly create new ones. What exists, exists.

Before Bitcoin, scarcity seemed impossible in the digital world. Anything digital can be copied — a photo, a song, a text — one click, and you have a duplicate. But thanks to the blockchain, the technology behind Bitcoin, it became possible to make digital information unique. Uncopyable. Unforgeable. Each bitcoin is one of 21 million. No more, no less.

And just like mining gold takes energy, mining new bitcoins requires computing power. That makes Bitcoin not only scarce but also costly to produce — just like gold.

In recent years, the comparison between Bitcoin and gold has become even more relevant. Global uncertainty — wars, inflation, doubts about the U.S. dollar — has people, companies, and even governments looking for a safe place to park their wealth. Gold has always been that anchor. But now, another voice is growing louder. Maybe it’s time for something new.

Bitcoin is still in its early days. But it’s already being taken seriously by governments, central banks, and publicly traded companies. Not as hype, but as a possibility. An alternative. A digital, decentralized form of security.

That’s why at Novelist, we believe Bitcoin isn’t just an interesting investment. It’s a necessary building block in every modern portfolio.

The world is changing. Maybe it’s time our money does too.