Steve Hanke, a senior economics professor at Johns Hopkins University, has said the recent market performance reinforces his long-standing view that Bitcoin (BTC) is ‘fool’s gold’ rather than a genuine store of value. 

The economist’s critique comes as gold prices surged to record highs above $5,000 per ounce, while Bitcoin has lagged, trading in the upper $80,000 range after falling sharply from its 2025 peak.

In a January 25 post on X, Hanke shared a comparative chart showing gold up about 48% over the period, while Bitcoin is down roughly 21.6%. Gold’s steady rise reflects sustained safe-haven demand, while Bitcoin has remained volatile with prolonged drawdowns.

Hanke argued the divergence shows that when investors prioritize capital preservation, they choose gold, reinforcing his view of Bitcoin as “fool’s gold.”

Gold’s rally to new record high 

Notably, gold’s rally has been driven by elevated geopolitical risk, persistent inflation concerns, and aggressive central-bank buying, particularly by emerging markets, reinforcing its role as a widely accepted defensive asset.

Bitcoin, by contrast, has traded more like a speculative risk asset. Despite wider institutional access through spot ETFs, it has remained below key long-term trend levels and failed to track gold during periods of market stress. 

Hanke has long criticized Bitcoin on fundamental grounds, arguing it lacks intrinsic economic value because it generates no income, represents no claim on productive assets, and is not widely used as a unit of account. 

He has also warned against governments or corporations holding Bitcoin as a reserve asset, citing added volatility and misallocation of capital.

The scholar has rejected the idea of Bitcoin as digital gold, arguing that scarcity alone does not create value without stability, broad monetary use, or economic backing. In his view, Bitcoin’s price is driven mainly by speculation and momentum rather than fundamentals.

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