Speaking to Kitco News, Holmes indicated that the rise of Bitcoin is challenging gold’s store of value status but stressed that volatility and regulatory crackdown are the main hindrances facing the cryptocurrency. Holmes added that mining companies are likely to produce more gold in 2022, which will drive the price above $2,000. At the same time, the executive stated based on Bitcoin’s ability to outperform other asset classes in 2021; the price movement places the digital currency in a good position to hit the $100,000 mark. According to Holmes, Bitcoin will likely become the ultimate store of value moving into the future due to millennials’ involvement. He stated that Bitcoin has replaced gold as a store of value for millennials. Furthermore, Holmes maintained that millennials would be the critical drivers for the surge in Bitcoin price and the general cryptocurrency market. He singled out that the young generation has embraced digital money, which has transitioned to digital assets despite the high volatility concerns. He added that Bitcoin’s potential to outperform gold is the ability for investors to own a portion of the asset, an aspect that does not apply to gold.
Gold mining companies should hold the precious metal
However, Holmes challenged gold mining companies to emulate their cryptocurrency counterparts by holding a significant portion of the mined precious metal. As reported earlier by Finbold, Holmes stated that Bitcoin’s decentralized nature is the crucial reason the asset has outshined gold to attract investors. Watch the full interview below:
