CEO of American Global Consulting Company: 2021 will be an important year for Bitcoin and Ethereum
Frank Holmes, CEO of the US Global Consulting Company, said that 2021 will be an important year not only for gold, but also for cryptocurrencies.
In an interview with Kitco News on Monday, Holmes said that he expects digital assets such as Bitcoin (BTC) and Ethereum (ETH) to perform as well as gold. He believes that these digital assets are being increasingly adopted due to their potential value drivers.
Regarding Bitcoin, Holmes believes that as the trend continues over the years, more and more people are beginning to embrace this digital asset:
“In the past three years, the number of wallets has continued to increase, and the number of people embracing Bitcoin has also increased. The growth has been very stable.”
Although many in the cryptocurrency industry compare Bitcoin to gold, Holmes said that Bitcoin is not driven by macro drivers like gold. On the contrary, the catalyst for Bitcoin was the deflation halving event in May this year.
He explained:
“If all the gold mines in the world say that we will reduce production by 50% tomorrow, I can assure you that the price of gold will be at $10,000.”
“This is a function of supply and demand,” Holmes concluded. After the halving in May, the number of newly mined bitcoins entering the market dropped to about 900 per day, and these supplies have been rapidly absorbed by institutions and large companies.
At the same time, Ethereum continues to benefit from the development of decentralized finance (DeFi). In terms of the total value locked, the DeFi ecosystem is worth more than $14.6 billion. Ethereum is the foundation of many activities. According to CoinMarketCap data, the market value of DeFi tokens is currently $18.2 billion.
As for gold, Holmes predicts that the price of gold will experience “two standard deviations” fluctuations, which may increase the price of gold by $400 to $800 in the next 12 months.
He said: “This will increase the price of gold to US$2,200 and US$2,600.”
Gold futures on the Comex division of the New York Mercantile Exchange opened up $26.40 to $1,86.40 per ounce on Monday.
