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.
[adinserter block="1"]“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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