Bitcoin will outdo gold in 2022 thanks to millennial involvement: Frank Holmes

Bitcoin is challenged by tough regulation and volatility, but it still stands a chance to outperform gold this year, according to Frank Holmes.
The cryptocurrency’s rise will mainly be fueled by millennial endorsement according to the CEO of US investment firm Global Investors.

In another Bitcoin (BTC) vs gold commentary, Frank Holmes, CEO of US investment firm Global Investors, has shared his opinion on the prospects of the two assets in 2022.

Speaking to Kitco News, Holmes said gold has the potential to rise in value this year. However, he also noted that Bitcoin has a strong case of outperforming gold on the back of millennial endorsement. Bitcoin is strongly challenging gold in the store of value market, he said. However, volatility and regulatory crackdown are the cryptocurrency’s biggest hindrances.

According to Holmes, there is a chance that gold mining companies will produce more this year, which will drive gold’s value above $2,000. Bitcoin, on the other hand, outdid many other asset classes in 2021 and is therefore well poised to hit the $100,000 mark in 2022. Holmes joins Goldman Sachs, El Salvador’s President Nayib Bukele, and other industry pundits in giving a $100K BTC price prediction for 2022.

At press time, BTC was still trading sideways at $46,202, while gold was valued at $1,818, according to Gold’s price is down 5.62 percent in the last year, while BTC’s is up 47.3 percent.

Bitcoin and gold compete as store of value

Between the two assets, Holmes thinks Bitcoin has a better chance at becoming the ultimate store of value. His reasons are increased involvement by the millennial generation, which has replaced their gold for cryptocurrency. His opinions echo findings by the December 2021 CNBC Millionaire Survey – 83 percent of millennial millionaires own crypto and 48 percent of them plan to increase their stash this year. Another study by CryptoVantage also revealed that millennials own the most cryptocurrency compared to other generations.

Holmes thinks this cohort will be critical drivers of the surge in BTC price and that of the greater crypto market. Digital money has become this generation’s interest, and it has led them to digital assets, which they have embraced despite volatility concerns, he added. Previously, Holmes pointed out that investors’ interest in crypto has been bent on its decentralized nature. Holmes said;

I think Bitcoin can do much better, and the only headwind is going to be regulatory policymaking. That adds to its daily volatility of it. I think that Bitcoin has a greater chance of outperforming gold. <…> What’s important is that millennials are important for price discovery which attracts institutional money, and America is trying to get their arms around how they want to regulate it,

Side notes

Moreover, he thinks Bitcoin’s potential to outdo gold is based on its relative ease of acquisition compared to gold. Here, he challenged gold mining companies to hold a significant portion of the precious metal, just like their crypto counterparts:

They should hold on. They shouldn’t sell what they believe is so cheap, and that’s what a lot of Bitcoin people believe that Bitcoin is going to trade much higher with all this government money printing.

Der Beitrag Bitcoin will outdo gold in 2022 thanks to millennial involvement: Frank Holmes erschien zuerst auf Crypto News Flash.