The U.S. Global Investors CEO, Frank Holmes, has currently given remarkably bullish predictions for the two largest cryptocurrencies. He considers that Bitcoin and Ethereum might be capable of reaching $80,000 and $3,000 in 2021. Nevertheless, he also discussed the likelihood of both the cryptocurrencies dropping at the level of $20,000 and $500, individually. He made these forecasts based on a philosophy named “DNA of Volatility.”
As per Holmes, each asset class has its DNA of volatility or the typical percentage of price fluctuation over some time. He perceives it interesting when two separate assets have relative volatilities. Moreover, he shows that the DNA of Tesla’s volatility is equivalent to Ethereum. He stated that the DNA of volatility of Tesla is the same as the DNA of volatility of Ethereum.
Frank Holmes compares Tesla and Crypto for DNA of Volatility
Frank Holmes elucidates that Tesla is introducing revolutionary innovation in the car industry, and cryptocurrencies are doing a similar thing with the global financial sector. He considers this because the DNA of volatility is comparable as both perform the same kind of volatility and uncertainty in the price. Nevertheless, these assets reside in entirely different industries. They are both means of evolution, which develops similar uncertainty and price volatility.
Moreover, some extremely bullish forecasts are coming along the way for Bitcoin. Few have claimed that Bitcoin possesses the potential to reach $1,000,000 in the future. Frank Holmes has declared that in the next 3-4 years, Bitcoin will be a very significant part of the community. He also prophesied that in the coming years, Bitcoin would reach the $400,000 level. Forecasting 3-4 years down the road, Holmes assumes that Bitcoin will still be necessary as art even if it doesn’t match the sovereign digital money. He equates owning Bitcoin to having an original Andy Warhol print; Bitcoin is far more transactive.
Follow BitcoinWorld for the latest updates.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.