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(Kitco News) – Ethereum will be the next cryptocurrency to explode higher, predicts Frank Holmes, CEO and CIO of US Global Investors. Ethereum, the second most valuable cryptocurrency behind Bitcoin, is already up 830% in the past year.
Holmes, who is also the executive chairman of HIVE Blockchain, spoke with Kitco News presenter David Lin. HIVE Blockchain is the first crypto miner listed on the Toronto Venture Exchange.
Holmes compared the phenomena of the rise of gold, and then silver, to the same phenomena that occur with Bitcoin and Ethereum. “When gold hits a 50-day moving average and goes up 15-20%, silver suddenly goes up 30%. Ethereum is for Bitcoin, it’s like silver for gold,” he explained. “Bitcoin is loading up, and then all of a sudden Ethereum explodes higher. This is the perfect place for us.”
“The biggest challenge we have in mining Ethereum is that so many young people have GPU chips for gaming, and they all mine Ethereum, so we’re getting less coins. Our prices have gone up significantly from a year ago. , but the machines that used to produce 300 Ethereum per day when Ethereum was $ 300 – now produce 80 per day, “Holmes pointed out.” Our net or gross income is higher because all these players all over the world are in crypto. The game as a whole is a $ 600 billion business. “
Holmes said his biggest concern for Ethereum was that “we’re moving from a proof of work, which is mining and validating the encryption, to a proof of stake. But that hasn’t happened – with every bet. to level – all it does is cut the supply out, but that doesn’t stop the demand and the people exploiting it, ”he said.“ It’s actually a lot more decentralized. in the world than Bitcoin miners are. “
He explained why he is so bullish on Ethereum. “It’s a smart contract – Ethereum has a lot more uses than Bitcoin, the same way money does – 20% of the demand for silver is for solar power. It has a green footprint, viruses can’t live on money, it has many medical uses, etc., ”added Holmes.“ The same with Ethereum, it is used for DeFi, for NFT’s. It’s a much bigger backbone for blockchain growth. ”
But Holmes said Bitcoin has positive attributes as well. “Bitcoin is a store of value. Its greatest asset is its ability to transfer immediately and at a lower cost compared to traditional money transfers like Western Union. Thus, remittances between developed and developing countries are a classic reason why Bitcoin is a superior way to transfer money, “he said.
Holmes encourages young and aggressive investors to own both Bitcoin and Ethereum. “Gold is a great trade for conservative or older investors, but it has lagged behind the markets in terms of money printing. Gold is expected to have a projectile potential of $ 3,000 an ounce on a short time, ”said Holmes.
For more on Holmes’ take on investing, watch the full video above. Follow David Lin on Twitter @davidlin_TV.
Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to trade in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.
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