Frank Holmes, CEO of U.S. Global Investors, has recently given extremely bullish predictions for the two largest cryptocurrencies. According to him, Bitcoin and Ethereum might be able to reach $80,000 and $3,000 in 2021. However, he also mentioned the possibility of both the cryptocurrencies falling at the level of $20,000 and $500, respectively. He made these predictions through a philosophy called “DNA of Volatility.”
Frank Holmes Says Tesla and Ethereum Have Similar DNA of Volatility
Frank Holmes has mentioned that each asset class out there is having its own DNA of volatility. He said that the DNA of volatility of Tesla is exactly the same as the DNA of volatility of Ethereum. He finds it quite interesting when two completely different asset classes have the same volatility.
Frank Holmes has mentioned that Tesla is bringing out innovation in the car industry and cryptocurrencies are doing the same thing with the global financial sector. He believes this is the reason why the DNA of volatility of both of them is similar as both create the same kind of volatility and uncertainty in the price.
Bitcoin to be Valuable as Art: Holmes
Some highly bullish predictions are coming along the way for Bitcoin and some have claimed that Bitcoin is having the potential to reach $1,000,000 in the future. Frank Holmes has stated that in the next 3 to 4 years, Bitcoin will be as valuable as art. He also predicted that in the coming years, Bitcoin will be able to reach the $400,000 level. He has also reasoned the limited supply of Bitcoin because of which Bitcoin will be valuable as art. Holmes stated:
“What will drive it to $400,000 valuations, I hear, is because it’s going to become an art. It’s going to be classified as a collector’s item.”