Bloomberg Intelligence’s senior commodity strategist Mike McGlone says that Bitcoin (BTC) adoption will continue to siphon off market share from more traditional assets such as gold.
In a new interview with BNN Bloomberg, the analyst says he is not completely bearish on gold, but recognizes that Bitcoin is the currency of the younger digital generation.
“The trend is unfavorable for gold. It’s a fact that Bitcoin is basically becoming like a giant Pac-Man. It’s sucking assets from all asset classes. It’s trickling into bonds now… but the key area it started with is gold, and I expect it to accelerate.
Now I’m not bearish [on] gold, but I think gold would be much higher. The fact is Bitcoin’s their new digital version in a world that’s going digital. Millennials don’t really want gold.”
McGlone adds that China’s recent all-out ban on crypto could help strengthen the US dollar given that it’s the main currency used as a base layer to trade digital assets. He says regulators should move to adopt the new asset class.
“The most widely traded crypto assets are crypto dollars. Tether’s [USDT] the number one, and then there’s a dozen Tether wanna-be’s. Crypto dollars can be traded 24-7, settle instantly, and they actually earn interest well above your dollars.
So the US regulation’s probably going to go there, but it’s [already] been adopted organically, in cryptos. The US dollar [is] the global reserve currency, and then the digital reserve asset is Bitcoin. They’re complete complements.”
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