Frank Holmes, CEO / CIO of US Global Investors, believes Bitcoin and Ethereum could hit $ 80,000 and $ 3,000, respectively, in 2021. He also sees the possibility of Bitcoin falling to $ 20,000 and Ethereum to $ 500. This wide spread is derived from a philosophy he calls it DNA of volatility.
DNA of volatility
According to Holmes, each asset class has its own DNA of volatility, or the typical percentage of price fluctuations over a period of time. He finds it particularly fascinating when two different assets have similar volatilities. In this interview, he points out that Tesla’s volatility DNA is the same as Ethereum’s.
The exchange, the S&P 500, is 1%. Gold is 1%. Gold stocks are 2%. But Tesla is 5%. The Ethereum is 5%. Bitcoin is 5%.
Why do these two seemingly disconnected assets have similar DNAs of volatility? Holmes believes that a higher area of volatility is an indicator of a disruptive asset. Tesla disrupts the auto industry while cryptocurrencies disrupt the global financial sector. While these assets reside in completely different industries, they are both agents of change, leading to similar uncertainty and price volatility.
Bitcoin becomes an art
The crypto room is famous for soaring Bitcoin price predictions. Some, like Dan Held, even believe that Bitcoin could reach $ 1,000,000 per coin. But if Bitcoin hit even a third of that number, how would it happen?
“I hear it’s going to be valued at $ 400,000 because it’s going to be art. It’s going to be classified as a collector’s item.”
Holmes postulates and postulates 3-4 years later that Bitcoin will still be valuable as an art, even if it doesn’t become the sovereign digital money for which it was originally built. He compares owning Bitcoin to an original Andy Warhol print, except that Bitcoin is far easier to manage.
“It’s amazing … and there’s limited supply!”
If you enjoyed this interview, click the “Like” button and subscribe to Cointelegraph’s YouTube channel.