After Russia's official invasion of Ukraine, Bitcoin continues to rise while Bitcoin drops rapidly. Evaluating the impact of the war between Russia and Ukraine on the markets, US Global Investors CEO Frank Holmes said that when looking at the historical development of gold, it has performed better during wars and political crises.
Emphasizing that investors should not stay away from gold due to the poor performance of gold in 2021, Holmes believes that gold will be a safer haven than Bitcoin in cases where tensions such as war are high.
On the other hand, saying that Bitcoin should be accepted as a good alternative to other assets, Holmes argued that although BTC is a good alternative, it is still a young asset class and has not proven itself yet.
"When we look at the historical development of gold, it emerges as a great asset in situations of political crisis such as war. Gold is historically the safest asset and I would stick with it. Bitcoin is a new phenomenon. It is widely adopted by generations X, Y and Z, but gold is also extraordinary. It has historical significance, gold is the most preferred asset class whenever there is major inflation or political turmoil. But with more regulatory work done in the cryptocurrency ecosystem, the next global focus will be Bitcoin.”
In this context, according to Holmes, only if Bitcoin passes through regulatory challenges, only then can Bitcoin replace gold as a safe haven.
Speaking to Kıtco News, Holmes also stated that he thinks the gold price could rise up to 50% more than the current levels.
Frank Holmes argued that the current value of gold is low given the current high inflation and the possibility of an increase in interest rates. Holmes, who thinks that gold should be around $4,000, thinks that the gold price target will be between $2,500- $3,000 for now.