Galaxy Digital head of research Alex Thorn is defending Bitcoin (BTC) against growing criticism that it has failed to deliver on its "digital gold" promise, arguing that the label was always a reference to BTC's monetary properties rather than a guarantee it would track bullion prices in every market environment.
What Happened: Thorn Reframes 'Digital Gold'
Thorn acknowledged that Bitcoin's failure to move alongside gold as part of what he called "the debasement trade" since Sep. 2025 had damaged the narrative among newer market participants. But he described that disappointment as a fundamental misreading of the thesis.
"When bitcoiners said 'digital gold' they were describing its fundamental properties, not that it's high beta to gold today," Thorn wrote, adding that the concept traces back to Satoshi Nakamoto.
To support his argument, Thorn shared a 2010 Bitcointalk exchange in which Satoshi proposed a thought experiment about a scarce base metal with no practical or ornamental use but one defining trait: it could be transmitted over a communications channel.
Thorn's reading of that passage is that Bitcoin resembles a scarce commodity in key monetary characteristics while adding native global portability that physical metals cannot match.
He framed the investment case as a gap trade — the spread between Bitcoin's structural, gold-like properties and the market's current willingness to price it accordingly. The potential return, in this framework, comes not from short-term correlation with bullion but from the probability that the market eventually closes that gap.
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Why It Matters: Narrative Versus Fundamentals
10T Holdings founder Dan Tapiero endorsed the argument, replying "Well said" and suggesting the current fear around Bitcoin resembles a familiar cycle reset. "So much fear out there on btc. Like the good ol days again," Tapiero wrote.
Not everyone was persuaded.
One user responded that Bitcoin has never traded like gold, regardless of branding. Thorn replied that this was precisely his point — "digital gold" was never a promise of constant gold-like trading behavior.
Thorn also pushed back on the idea that anything material has changed about Bitcoin recently. "Basically nothing has changed about bitcoin in the last 5 months," he wrote, adding that "if anything the fundamentals are even more appealing."
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