For thousands of years, gold has been money. Kings hoarded it, wars were fought over it, and until 1971 the U.S. dollar itself was backed by gold.

Bitcoin, on the other hand, is only 16 years old. Yet in 2025, it is seriously challenging gold as the world’s store of value.

Bitcoin has captured headlines for over a decade, but how should we really think about it—as a speculative craze, or as a legitimate asset class? If you’re building a portfolio and exploring alternatives beyond stocks, bonds, and real estate, understanding Bitcoin’s role is essential. Let’s break down Bitcoin’s characteristics, risks, and potential so you can make an informed decision.