Bitcoin

Gold

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<p>In a recent interview with Kitco News, Frank Holmes, CEO of U.S. Global Investors and Executive Chairman of HIVE Digital Technologies, shared his thoughts on the rising importance of alternative assets like gold and Bitcoin. As concerns over global debt and political instability grow, Holmes believes more investors are turning to these assets to protect their wealth.</p>   
<p>Holmes emphasized gold’s reliability, especially during times of economic uncertainty. He noted that gold has historically performed well when traditional markets struggle, making it a go-to choice for investors seeking stability. With ongoing global challenges, Holmes predicts gold will continue to be a key safe-haven asset.</p>   
<h2 class="wp-block-heading" id="h-the-new-age-safe-haven-for-all">The New-Age Safe Haven for All?</h2>   
<p>Holmes also discussed Bitcoin, often referred to as “digital gold,” as a vital part of the modern investment landscape. He highlighted its growing popularity among younger investors and the increasing adoption of <a href="https://coinpedia.org/news/bitcoin-spot-etfs-set-to-break-monthly-inflow-record-with-6-2-billion-in-november/" target="_blank" rel="noreferrer noopener">Bitcoin ETFs (exchange-traded funds)</a>, which are making it easier for traditional investors to enter the crypto market.</p>   
<p>According to Holmes, these factors are helping Bitcoin gain recognition as a legitimate and strategic asset, with many seeing it as a form of "portable" wealth that complements gold.</p>   
<h2 class="wp-block-heading" id="h-controversial-proposal-bitcoin-in-u-s-reserves"><strong>Controversial Proposal: Bitcoin in U.S. Reserves? </strong></h2>   
<p>Holmes weighed in on Wyoming <a href="https://coinpedia.org/news/senator-lummis-proposes-bitcoin-acquisition-to-tackle-us-debt-crisis/" target="_blank" rel="noreferrer noopener">Senator Cynthia Lummis’s</a> recent proposal to shift some of the U.S. government’s gold reserves into Bitcoin. The U.S. currently holds around 8,000 tons of gold and <a href="https://coinpedia.org/news/heres-how-the-u-s-governments-bitcoin-holdings-reached-13-82-billion/" target="_blank" rel="noreferrer noopener">200,000 Bitcoin</a>, but Lummis suggests the government should aim to accumulate 1 million Bitcoin over the next 20 years.</p>   
<p>While Holmes found the proposal intriguing, he expressed doubt that the U.S. would sell its gold to buy Bitcoin. Instead, he believes the government might issue bonds to fund Bitcoin purchases, similar to how some investors are adding Bitcoin to their portfolios without offloading traditional assets.</p>   
<h2 class="wp-block-heading" id="h-bitcoin-volatility-healthy-or-concerning">Bitcoin <strong>Volatility: Healthy or Concerning?</strong></h2>   
<p>Holmes addressed Bitcoin’s well-known price swings, pointing out that its volatility is much more pronounced than that of traditional assets like stocks. He explained that while the stock market might see a typical move of 3%, Bitcoin can easily rise or fall by 15% in a short time. However, Holmes views this volatility as a normal part of Bitcoin’s growth and a feature, not a flaw.</p>   
<p>The recent dip in <a href="https://coinpedia.org/price-analysis/120000-price-target-activated-for-the-bitcoin-btc-price-rally-will-it-be-achieved-in-2024/" target="_blank" rel="noreferrer noopener">Bitcoin’s price</a>, he said, is merely a “healthy pause” rather than a sign of trouble. Holmes believes this pullback is laying the groundwork for a new rally.</p>   
<p>Despite the volatility, Holmes is optimistic about Bitcoin’s future. He predicts that once current fears, such as those tied to <a href="https://coinpedia.org/news/fed-rate-cut-news-today-bitcoins-rally-in-jeopardy-amid-inflation-concerns/" target="_blank" rel="noreferrer noopener">Federal Reserve rate cuts</a>, subside, Bitcoin could climb to $120K—a target shared by many analysts.</p>   
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   https://www.youtube.com/watch?v=vi_mM1M0Xgc 
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<h2 class="wp-block-heading" id="h-faqs">FAQs</h2>   
<div class="schema-faq wp-block-yoast-faq-block">
 <div class="schema-faq-section" id="faq-question-1732880506464">
  <strong class="schema-faq-question"><strong>Why is Bitcoin considered a "digital gold"?</strong></strong> 
  <p class="schema-faq-answer">Bitcoin is viewed as digital gold due to its scarcity, decentralized nature, and growing adoption, making it a modern safe-haven asset.</p> 
 </div> 
 <div class="schema-faq-section" id="faq-question-1732880512554">
  <strong class="schema-faq-question"><strong>How does Bitcoin’s volatility impact its value?</strong></strong> 
  <p class="schema-faq-answer">Bitcoin’s volatility, while higher than traditional assets, is seen as a normal part of its growth, creating opportunities for significant price swings.</p> 
 </div> 
 <div class="schema-faq-section" id="faq-question-1732880526882">
  <strong class="schema-faq-question"><strong>What did Frank Holmes say about Bitcoin in U.S. reserves?</strong></strong> 
  <p class="schema-faq-answer">Holmes acknowledged Wyoming Senator Cynthia Lummis’s Bitcoin proposal but doubted the U.S. would sell gold, suggesting bond issuance for Bitcoin purchases.</p> 
 </div> 
</div>

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