## Bitcoin "Supply Outperformance": Why Precious Metals Can't Compare

Over the past decade, the race between bitcoin and traditional assets has painted a clear picture. Analyst Adam Livingston notes that since 2015, bitcoin has recorded an increase of approximately 27,701%, while silver only rose 405% and gold reached 283% during the same period. These figures make it impossible for some other experts to deny.

However, the debate doesn't stop there. Peter Schiff, a long-time gold advocate, argues that we should look at the performance over the past 4 years rather than the entire decade, and declares "the era of bitcoin is over." This is a clash between two completely different schools of thought.

**Fixed Supply vs. Free Market Mechanism**

Matt Golliher, co-founder of Orange Horizon Wealth, points out a key point: precious metals follow basic economic logic—when prices rise, output also increases, causing prices to converge toward production costs. This is the supply outperformance view in traditional commodity markets.

Bitcoin operates under a completely different rule. With a fixed supply of 21 million units, there is no mechanism for "increasing supply when prices are high." This is why bitcoin can outperform traditional assets without being bound by classical economic forces.

**Conflict in 2025**

Last year shows an interesting picture: gold reached a record around $4,533/ounce, silver nearly hit $80/ounce, but bitcoin remained relatively stable. This was when the US dollar index (DXY) fell nearly 10%, marking the worst year in a decade.

Nevertheless, since the beginning of 2025, bitcoin has recorded a -2.58% change compared to 12 months earlier, indicating that demand has not been strong enough to sustain growth.

**Potential Momentum from Loose Monetary Policy**

Arthur Hayes states that the Fed's easing policy combined with the weakening of the US dollar will become a supporting factor for scarce assets—a category including gold, silver, and bitcoin. According to this logic, all three assets should benefit from a loose monetary environment.

The question is: will bitcoin's fixed supply advantage be enough to outshine precious metals in the next phase, or will all three assets benefit together from the dollar's weakness? Time will tell.