Head of US Global Advisors: “2021 will be a good year for Gold, Bitcoin and Ether”
US Global Advisors CEO Frank Holmes suggested that Gld, Bitcoin and Ether could rise next year.
Holmes believes digital assets will be even more popular alongside gold in 2021. He explained that over time, more and more people became interested in bitcoin, and this trend has continued for many years. Over the past three years, the number of new Bitcoin wallets has increased significantly, which indicates the steady growth of this cryptoasset.
Despite the fact that many participants in the cryptocurrency industry compare Bitcoin to gold, Holmes believes that completely different factors affect the price of Bitcoin and gold. So, the increase in the value of the first cryptocurrency was influenced by the May halving of the reward to miners to 6.25 BTC.
“If the world’s gold mining companies announce that they will cut gold supplies by 50%, I can assure you that gold will cost $ 10,000 per troy ounce. It’s all about supply and demand. After the halving, the number of mined bitcoins entering the market dropped to about 900 per day, and the offer was quickly taken up by various institutions and corporations, ”Holmes said.
As for ether, its course is driven by the latest advances in decentralized finance (DeFi). According to DeFi Pulse, to date, the value of cryptoassets locked in DeFi protocols is $ 14.9 billion. Recently, DappRadar researchers reported that in Q3 2020, 96% of total DeFi transactions were in Ethereum, which was also the leader in the number of active wallets per day.
Frank Holmes also expressed optimism about gold. He expects this precious metal to rise $ 400- $ 800 over the next 12 months to reach $ 2,200- $ 2,600.
Holmes has always been a supporter of gold, believing that it will remain one of the main assets for investment for a long time to come. At the same time, the head of US Global Investors sees prospects in digital currencies. Holmes said last year that Bitcoin could be the “new gold”.