Why are governments, central banks, and leading investment banks always accumulating gold? Many people think it's a traditional practice, but the core reason is very simple—it simply cannot be replicated. Gold comes from supernova explosions; it is not something that Earth can continuously produce. This determines that the total amount of gold worldwide is essentially fixed. Looking at it from another angle, if you convert your profits into gold and hold it, assuming you own 0.1% of the global gold, it’s almost equivalent to permanently controlling 0.1% of the world's wealth.

The logic of Bitcoin is actually the same. The hard cap of 21 million coins, combined with the permanent loss caused by lost private keys, means that the effective supply will become increasingly scarce. That’s exactly why institutions keep buying. Recent data makes this clear—some leading institutions bought 13,627 BTC in the first week of January, spending $1.25 billion, with an average price of about $91,519 per coin. This was the largest weekly accumulation since July last year, far surpassing the usual sporadic purchases.

In the context of fiat currency continuously depreciating while productivity grows, as long as you don’t sell, your wealth will passively appreciate over time. The institutions increasing their holdings are using real money to hedge against the long-term risks that the entire fiat system might face. Ultimately, the most scarce assets on the market are those that cannot be diluted.