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WATCH: Gold bug Frank Holmes’ 2021 volatility ranges: $80K Bitcoin and $3K Ethereum?

Frank Holmes, CEO/CIO of US World Buyers, believes Bitcoin and Ethereum might attain $80,000 and $3,000 respectively in 2021. He additionally sees the potential of Bitcoin dropping to $20,000 and Ethereum dropping to $500. This huge unfold is derived from a philosophy he calls the DNA of volatility.

DNA of volatility

In accordance with Holmes, every asset class has its personal DNA of volatility, or the standard share of value fluctuation over a time period. He finds it significantly intriguing when two totally different belongings have comparable volatilities. On this interview, he factors out that the DNA of volatility of Tesla is identical as Ethereum.

The inventory market, the S&P 500, is 1%. Gold is 1%. Gold shares are 2%. However Tesla is 5%. Ethereum is 5%. Bitcoin is 5%.

So why do these two seemingly disconnected belongings have comparable DNAs of volatility? Holmes believes {that a} greater vary of volatility is an indicator of a disruptive asset. Tesla is disrupting the automobile trade whereas cryptocurrencies are disrupting the worldwide monetary sector. Though these belongings inhabit wholly totally different industries, they’re each brokers of change, which creates comparable uncertainty and volatility in value.

Bitcoin will grow to be artwork

The crypto area is known for high-flying Bitcoin value predictions. Some, comparable to Dan Held, even imagine Bitcoin might hit $1,000,000 per coin. But when Bitcoin have been to achieve even a 3rd of that quantity, how would it not occur?

“What’s going to drive it to $400,000 valuations, I hear, is as a result of it’s going to grow to be artwork. It’s going to be labeled as a collector’s merchandise.”

Wanting 3-4 years down the street, Holmes postulates that Bitcoin will nonetheless be worthwhile as artwork even when it doesn’t grow to be the sovereign digital cash it was initially constructed to be. He likens proudly owning Bitcoin to having an authentic Andy Warhol print, besides Bitcoin is way extra transactable.

“It’s wonderful…and there’s a restricted provide!”

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