Goldman and Bank of America report the growing fiscal gap in the US to boost gold prices. Moreover, the impending US dollar crisis further brings out the experts’ bullish views on gold. Now, what could it mean for Bitcoin, the digital gold?
Gold has always been seen as the best alternative investment option and hedge against the losses during the time of crisis. With the fiscal gap keeps on growing bigger and the impending US dollar crisis, gold is expected by the experts to take a surge in the coming times.
According to Bank of America Merrill Lynch, Gold prices will soar over the course of next year. This is due to the rising concerns over US budget deficit and the country’s trade war with China that keeps on getting worse.
Currently, spot gold is trading near $1,200 which is expected to go above $1,300 an ounce next year.
Bloomberg quoted, Francisco Blanch, head of global commodities and derivatives research as saying, “We’re still pretty constructive longer term on gold,” he further added:
“In the short run, the effects of a strong dollar, higher rates dominate. But in the long run, a huge U.S. government budget deficit is pretty positive for gold.”
Ray Dalio, the owner of the world’s largest hedge fund has already predicted and warned of the downturn of US economy in about two years.
The US administration’s tax cuts along with new federal spending will take the budget deficit to $1 trillion in 2020, as per the Congressional Budget Office forecast.
As for the trade war, Blanch stated,
“Eventually the trade wars are going to come back to bite the U.S. It could take longer, it could take shorter, eventually it’s going to happen, but maybe the Fed acknowledges it sooner, which is what people are going to be looking for in terms of getting more bullish on gold. We know that trade wars are not good for the economy.”
Recently, Galaxy Digital founder and CEO, Mike Novogratz pointed out Bitcoin being the digital gold and as the millennials turn older they will be moving towards the digital asset while further adding,
“It’s become a digital store of value — it is the first digital asset that people are now vesting with store of value.”
According to him, “There’s an institutional FOMO going on all of a sudden.” And not just this, eventually it would become a part of the financial portfolios of the people, shared Novogratz before adding,
“As you start getting custody and service providers in and around the system, it allows pension funds and endowments to get involved.”
Moreover, Dan Hedl, co-founder of ZeroBlock shared a Tweet storm regarding Bitcoin as a digital gold stating,
“Gold achieves irreversibility through its refractory chemistry and the time-based entropy of extraction. Bitcoin offers similar irreversibility through complex mathematics and software, based on a time-stamped public chain of blocks.”
Bitcoin has been increasingly seen as the digital gold and a store of value. Now, even more so as Bitcoin volatility is slowly getting down. Moreover, the world’s leading cryptocurrency surely holds a potential alternative option for the millennials. So, it is expected in the coming years as bitcoin halvening approaches and global debt and currency crises hit on, Bitcoin would get a boost just like gold is expected to surge.
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