Gold Bug Frank Holmes Optimistic About BTC Prospects in 2021, Says Halving Cushioned Demand
The well known gold bug, CEO and chief investment officer at U.S. Global Investors, Frank Holmes recently sat down for an interview and discussed his price predictions in regard to the 2021 value of gold. Holmes also said that cryptocurrencies will continue to do well next year, as he believes increasing bitcoin adoption and decentralized finance (defi) will benefit the industry.
A number of gold bugs like Peter Schiff are not too keen about bitcoin and cryptocurrencies. Then there are other well known precious metals proponents who have warmed up to digital assets like bitcoin.
For instance, the gold bug and monetary expert, Andy Hoffman, explained a few years ago that he had to change his “thought process to understand that bitcoin is no enemy of gold and silver.” In fact, Hoffman now believes that gold and cryptocurrencies are allies towards ending “the largest most destructive Ponzi scheme — Fiat.”
On Monday, the prominent gold investor and CEO at U.S. Global Investors, Frank Holmes talked about bitcoin during an interview with Kitco. Much like Hoffman, Holmes is enthusiastic about both types of assets performing well next year.
Holmes said that gold moving northbound another 40% in 2021 is “very doable,” 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,” firmly says the PM will follow the 68–95–99.7 rule.
“A two-standard deviation move, which happens so often now in the past 21 years, we can get between a $400 move and an $800 move in the price of gold over the next 12 months. That would take us from to $2,200 to $2,600,” Holmes said during the interview.
Holmes also discussed the second-largest cryptocurrency by market valuation ethereum (ETH) and talked about the network transitioning to ETH 2.0. Ethereum’s value has benefited from the developments in the decentralized finance (defi) space, Holmes noted. The Global Investors executive also said that the swelling number of bitcoin (BTC) wallets has shown that people are embracing the digital asset.
“The number of wallets, people that are embracing bitcoin, that’s been growing for the past three years,” Holmes explained.
Moreover, the recent BTC block reward halving that took place in May 2020 has contributed to the crypto asset’s demand Holmes detailed.
“If tomorrow, if all the gold mines in the world said we’re going to cut supply by 50%, I can assure you gold will be at $10,000,” Holmes insisted during his interview.
It’s not the first time Holmes has spoken about bitcoin and he has been optimistic about both crypto and precious metals assets in the past. In May, Holmes joined Frank Curzio from Curzio Research when he discussed the current market trends. In the video, the Global Investors executive explained that when it comes to bitcoin vs. gold, both can be great hedges.
What do you think about Frank Holmes saying that bitcoin and ethereum will do well in 2021? Let us know what you think about this subject in the comments section below.
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