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Bitcoin to overtake gold in 2022 thanks to the involvement of millennials: Frank Holmes

  • Bitcoin faces tough regulation and volatility, but it still has a chance to outperform gold this year, according to Frank Holmes.
  • The rise of the cryptocurrency will primarily be driven by millennium support, according to the CEO of US investment firm Global Investors.

In another comment on Bitcoin (BTC) against gold, Frank Holmes, CEO of US investment firm Global Investors, shared his thoughts on the prospects for both assets in 2022.

Speaking to Kitco News, Holmes said gold has the potential to increase value this year. He also noted, however, that Bitcoin has a high chance of outperforming gold thanks to the support of millennials. Bitcoin is facing a strong challenge for gold in the value market store, he said. However, the biggest obstacles to cryptocurrency are volatility and regulatory measures.

According to Holmes, there is the potential for mining companies to produce more gold this year, which will drive the value of gold above $ 2,000. Conversely, Bitcoin outperformed many other asset classes in 2021 so it has a good chance of reaching the $ 100,000 mark in 2022. Holmes joins Goldman Sachs, El Salvador President Nayib Bukele, and other industry experts to bring BTC price forecast to $ 100,000 by 2022.

At press time, BTC was still trading on all sides at $ 46,202, and gold was valued at $ 1,818, according to goldprice.org. The price of gold has fallen 5.62% over the past year, while the price of BTC is up 47.3%.

Bitcoin and gold compete as a store of value

Between the two assets, Holmes believes that Bitcoin has a better chance of being the ultimate store of value. The reasons for this are the increasing involvement of millennials, who have replaced cryptocurrency with their gold. Their comments echo the results of CNBC’s December 2021 Millionaire Survey: 83% of millennials are cryptocurrencies and 48% plan to increase their deposits this year. Another CryptoVantage study also showed that millennials own the most cryptocurrencies compared to other generations.

Holmes believes that this cohort will drive the rise in the price of BTC and the cryptocurrency market in general. Digital money is now the interest of this generation, and has led to digital assets, which they embraced despite concerns about volatility, he said. Earlier, Holmes noted that investor interest in cryptocurrencies is tilted by its decentralized nature. Holmes said;

I think Bitcoin can do much better, and the only headline will be regulatory policy making. This adds to your daily volatility. I think Bitcoin has a better chance of outperforming gold. (…) The important thing is that millennials are important to the price discovery that attracts institutional money, and the United States is trying to get its arms around how they want to regulate it,

Secondary notes

Furthermore, he believes that Bitcoin’s potential is better than gold based on its relative ease of acquisition compared to gold. In this regard, he challenged gold mining companies to hold a significant portion of the precious metal, just like their crypto counterparts:

They should stand out. They should not be selling what they think is so cheap, which is why many Bitcoin people think that Bitcoin will trade much higher to print all this money.

Javier Marquez

Javier Marquez has been closely following the development of bitcoin and blockchain technology since 2017. Since then, he has been working as a columnist, reporting on the ups and downs, implications and developments of the cryptocurrency market. He believes that cryptocurrencies and blockchain technology will have a huge positive impact on people's lives.

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