According to Frank Holmes, CEO of US Global Investors, 2021 will be a big year, not only for gold but also for cryptocurrencies.

Holmes said in an interview with Kitco News on Monday that he expects digital assets such as Bitcoin (BTC) and Ether (ETH) to work exceptionally well with gold. He believes that these digital assets are becoming more widespread due to their underlying value drivers.

When it comes to Bitcoin, Holmes felt that several used digital assets in a continuation of a multi-year trend:

“The number of wallets for people who use bitcoin has increased in the last three years. Good stable growth. ”
While many in the cryptocurrency industry compare Bitcoin to gold, Holmes said that Bitcoin is not powered by the same macros as bullion. Instead, Bitcoin’s rocket fuel will be cut in two last year in May.

To explain:

“If all the gold mines in the world tomorrow say we’ll cut supplies by 50%, I can assure you that gold will be $ 10,000.”
“This is a function of supply and demand,” Holmes concluded. After cutting in half in May, the number of newly acquired BTCs in the market fell to around 900 per day – an offer that was quickly absorbed by companies and giants.

Meanwhile, Ethereum continues to benefit from the latest advances in decentralized finance. In terms of total closed value, the DeFi ecosystem is valued at over $ 14.6 billion, and Ethereum is the building block for much of this activity. DeFi tokens are currently valued at $ 18.2 billion, according to CoinMarketCap.

For gold, Holmes predicts a “standard deviation” movement for precious goods – one that could push prices up by $ 400-800 over the next 12 months.

He said, “This will increase us from $ 2,200 to $ 2,600.”

Gold futures were up $ 26.40 Monday to $ 1,866.40 ounces on COMEX, a division of the New York Mercantile Exchange.

Source: CoinTelegraph

LEAVE A REPLY