Gold Bug Frank Holmes Optimistic about BTC’s prospects in 2021, says Halving Cushioned Demand.
Well-known prospector, CEO and chief investment officer at U.S. Global Investors, Frank Holmes recently sat down for an interview and discussed his price predictions regarding the value of gold in 2021. Holmes also said that cryptocurrencies will continue to do well next year as he believes increasing bitcoin adoption and decentralized funding (defi) will benefit the industry.
Some gold bugs like Peter Schiff are not too enthusiastic about bitcoin and cryptocurrencies. Then there are other well-known proponents of precious metals who have warmed up to digital assets such as bitcoin.
For example, the gold connoisseur and monetary expert, Andy Hoffman, explained a few years ago that he had to change his “thinking process to understand that bitcoin is not an enemy of gold and silver”. In fact, Hoffman now believes that gold and cryptocurrency are allies towards the end of “the greatest destructive Ponzi scheme – Fiat.”
On Monday, the prominent gold investor and CEO of U.S. Global Investors, Frank Holmes spoke about bitcoin in an interview with Kitco. Like Hoffman, Holmes is excited about both types of assets performing well next year.
Holmes said that gold moving north is “doing very well” another 40% in 2021, and he sees the precious metal (PM) trading at “$2,200 to $2,600 an ounce”. Holmes, the author of the book “The Goldwatcher. “Demystifying Gold Investing”, says the PM will follow the 68-95-99.7 rule.
“A two-standard deviation movement, which now happens so often in the past 21 years, we can move between a $400 movement and a $800 movement in the price of gold in the next 12 months. That would take us from
up to $2,200 to $2,600,” Holmes said during the interview.
Holmes also discussed the second-largest cryptocurrency by market valuation ether (ETH) and talked about network transitioning to ETH 2.0. The value of the ether has benefited from developments in the decentralized financial (defi) space, Holmes noted. The Global Investors executive also said that the increasing number of bitcoin (BTC) wallets has shown that people are embracing the digital asset.
“The number of wallets, people embracing bitcoin, has grown over the past three years,” Holmes explained.
In addition, the recent BTC block remuneration, which was halved in May 2020, contributed to the demand for the crypto assets that Holmes worked out in detail.
“If tomorrow, when all the gold mines in the world say we are going to reduce supply by 50%, I can assure you that the gold will be $10,000”, Holmes insisted during his interview.
It is not the first time that Holmes has spoken about bitcoin and he has been optimistic about both crypto and precious metals in the past. In May, Holmes joined Frank Curzio of Curzio Research when he discussed current market trends. In the video, the Global Investors executive explained that when it comes to bitcoin vs. gold, both can be big hedges.
What do you think about Frank Holmes saying bitcoin and ethereum will do well in 2021? Let us know what you think of this topic in the comment section below.
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Published on Wednesday 09 Dec 2020 12:00:43 +0000