You’ve likely heard about Bitcoin as “Digital Gold”

And you’ve likely heard plenty about Bitcoin — but what is it really, and could it have a place in a well-diversified portfolio?

In a recent episode of AMP’s Simplifying Investing podcast, Dr Shane Oliver (AMP Chief Economist) interviewed Jonas Benner, a quantitative analyst at AMP Investments, to unpack what Bitcoin is, the history of money behind it, and how investors might think about it in today’s environment.

Bitcoin as “Digital Gold” – a new form of money

1️⃣ A new form of money

“Bitcoin is a new form of money that is purely digital and decentralised.” — Jonas Benner

Bitcoin was designed to be a scarce, digital monetary network that allows value to move globally without intermediaries.
Its total supply is capped at 21 million coins, set by its founder Satoshi Nakamoto in 2008, making it the first form of programmable, non-sovereign money.

2️⃣ Why history matters

Throughout history, societies have naturally chosen the “hardest” money available — the one most resistant to inflation.
Gold dominated for thousands of years because it was hard to mine and impossible to counterfeit.
When paper currencies (“fiat money”) replaced gold in the 20th century, we gained flexibility and speed — but lost that natural discipline on supply.

Bitcoin attempts to reintroduce the scarcity of gold while overcoming its physical limitations (storage, transport, divisibility).

3️⃣ Addressing common concerns

⚡ Volatility
Bitcoin remains highly volatile and should only ever be considered a small, satellite exposure within a diversified portfolio.

🔋 Energy use
Mining does consume electricity, but studies show more than half comes from renewable or stranded energy, often stabilising power grids by absorbing excess supply.

🕵️ Crime and scams
Like all money, Bitcoin can be misused. However, its public blockchain records every transaction permanently — ironically making it more traceable than cash.

💰 “No intrinsic value?”
Gold and Bitcoin share this trait: their value isn’t derived from income but from their monetary properties — scarcity, portability and network adoption.

Where does Bitcoin as “Digital Gold” fit in?

4️⃣ Where Bitcoin may fit

Bitcoin is increasingly viewed as a potential “digital gold” — a hedge against long-term currency debasement and geopolitical uncertainty.

AMP’s investment team began cautiously allocating a small, dynamically managed exposure (around 0.05 %) in 2024, reflecting the asset’s growing legitimacy and infrastructure maturity.

Portfolio guidelines:

• Treat as a store-of-value diversifier, not a growth engine.
• Keep exposure small — typically 1–3 %, occasionally up to 5 %.
• Use ETFs or managed strategies for easier access and professional oversight.
• Review regularly; expect deep drawdowns even within long-term uptrends.

“Start small, learn as you go, and only increase exposure if adoption and regulation continue to strengthen.” — Jonas Benner

5️⃣ Key takeaways

✅ Bitcoin seeks to restore the “hard money” function in a digital economy.
✅ It may offer long-term diversification benefits — but only in small allocations.
✅ It’s high-risk, high-volatility, and best suited for investors who understand its nature.
✅ Access options now include regulated ETFs, bringing it into mainstream portfolios.

Who might consider it?

• Investors worried about currency debasement and long-term purchasing power.
• Diversifiers seeking a low-correlated, high-vol potential satellite position.
• Tech-comfortable investors who understand the risks and can stay the course.

Who should be cautious or avoid it?

• Anyone with a short time horizon, low risk tolerance, or no capacity to absorb large drawdowns.
• Investors who won’t maintain discipline (rebalancing, sizing, and review).

Our view
Bitcoin is increasingly treated as a digital store of value. That doesn’t remove the risks—but it does frame how to use it: modestly, deliberately, and with robust risk controls. If it continues to mature (liquidity, regulation, infrastructure), it may earn a small, strategic place in well-diversified portfolios.

Ready to talk about whether Bitcoin belongs in your plan?
We can help you weigh benefits, risks, and practical access options in the context of your goals, tax position and risk profile.

👉 Email or book a chat here.

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6️⃣ Final thoughts

Bitcoin has evolved far beyond its early “wild west” reputation.
While it remains speculative and volatile, it’s also increasingly treated as a legitimate store-of-value asset by major institutions worldwide.

If it continues to mature, it may warrant a modest, carefully considered role in future-focused portfolios — but it’s not for everyone.

Need help deciding if Bitcoin suits your portfolio?

Our advisers can help you explore digital assets within your overall financial strategy — ensuring risk, tax, and superannuation implications are properly addressed.

👉 Book a 20-minute chat
👉 Contact FMG Wealth Strategists

Arthur Panagis
Author, Founder, Wealth Coach and Financial Strategist
Call us on 08 7111 0022
👉 Book a chat with us today.

B.Bus (Accounting)
Grad Dip (Financial Planning)
Professional Certificate in Self Managed Super Funds
ASX Listed Equities Accreditation
Tax (financial) Advisor

💸⏰ Watch the full interview here

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Disclaimer

This content is general in nature and does not consider your personal objectives, financial situation or needs. It is not financial or tax advice. Before acting, seek professional advice.
Past performance is not a reliable indicator of future results. Cryptocurrency is high-risk and volatile. Only invest what you can afford to lose and review relevant disclosure documents before making any decision