According to Digix co-founder and COO Shaun Djie, the financial market has enough demand to sustain both gold and bitcoin as a safe haven asset. In an interview with Kitco News, Shaun Djie emphasized that gold and Bitcoin will outperform many asset classes this year.
Shaun Djie: Bitcoin Will See $100,000 and Gold $2,000 by Year’s End Digix co-founder and COO Shaun Djie predicts the precious metal will rally as high as $2,000 per ONS by the end of the year. While the reason for his optimism remains unclear, Shaun Djie warned that the epidemic will not end this year. Shaun Djie says:
I wouldn’t be surprised to see $100,000 in bitcoin trading by the end of the year. As for gold, I wouldn’t be surprised to see it back near $2,000. It is unlikely that this year everyone in the world will be vaccinated and the latter will reopen to tourism. That means there’s more uncertainty ahead. I wouldn’t be surprised to see a really significant market correction by the end of the year. Full economic recovery will take more than four years. All of the liquidity out there goes into highly speculative investments. The stock market is very valuable today. Almost every two weeks we see all-time highs. With social media and all the comments there, Beşerler finds the idea of investing a lot less daunting than he did two years ago.
Digix co-founder: Bitcoin will not replace gold! Gold Will Return to Its Older Times
Shaun Djie says gold and bitcoin could rise as investors look for better depositories. Shaun Djie adds the following to his comments on the bet:
I don’t think one should replace the other. Gold has been around much longer. And its physical side will still be crucial and attractive to investors there. Bitcoin attracts a different investor than gold. The crypto world appeals to people who have accelerated digital learning over the past 12 months. Since the start of the COVID pandemic, more and more people are going to the stock market via their mobile phones. The whole wave of self-education multiplied. Understanding of bitcoin is increasing and people are buying bitcoin themselves as a store of value. Unaffected by this is gold, which will continue to provide allure. The market is large enough to accommodate both asset classes. You can appeal more to the digital crowd and the glutton more to the physical crowd. Another thing to consider in the gold and bitcoin discussion is all the regulatory tips from US officials. Gold will see much more action as regulators and various investors comment on bitcoin. Gold is likely to retain its former status as a safe haven and risk-free asset.
Shaun Djie: Bitcoin processes are not very efficient when it comes to words
US Treasury Secretary Janet Yellen recently Bitcoin’s Cash He said it’s an “extremely inefficient” way of running processes. Janet Yellen told CNBC:
I don’t think bitcoin…is widely adopted as a process system. To the extent that it is used, I am afraid it is often used for illegal funding. It’s an extremely inefficient way of running processes, and the amount of energy expended in processing these processes is astounding.
Shaun Djie agreed with Yellen, explaining that Bitcoin is not very efficient when it comes to processes and words. However, Shaun Djie explained that the efficiency of crypto processes is not the reason why people jump on the crypto bandwagon. Shaun Djie adds the following to his explanations on the subject:
It is inefficient in ordinary processes. But today, the bitcoin narrative is more of a store of value and not a payment or processing tool that takes place on a peer-to-peer basis. Companies like Tesla, MicroStrategy, and Square have all bought bitcoin. BTC showed its potential as a store of value. I don’t think anyone out there would want to use this for processes on a daily basis. Slow, variable and valuable in use.
Famous Expert: Gold’s Resurrection! You Will See Prices Rise
According to Shaun Djie, gold will start trading higher and regain its safe haven status as it becomes clear that the economy will face further hurdles in 2021 , including inflation. Shaun Djie adds:
Since the beginning of the year, buying gold hasn’t been impressive as people want better returns in other forms of investment like stocks and the crypto market. Gold has always been considered a risk-averse investment. However, this year the market is experiencing a process in a risky environment. Going forward, you will see prices rise as market investors realize that they should buy gold over other assets. Investors won’t be able to ignore the warning signs for long: inflation, money printing, a lower dollar, low interest rates, and a multi-priced stock market. The stock market is close to its all-time high, but we still don’t see a corresponding economic recovery. Also, interest rates will remain very low while the US dollar is likely to trade much lower against its peers.
Shaun Djie: There are so many reasons why gold prices are rising! Here are some of them…
According to Shaun Djie, inflation often happens much more slowly than other economic indicators. But once the time comes, according to the expert, investors should brace themselves for an inflationary phase for the next 12 to 24 months. Shaun Djie adds the following to his comments on the bet:
Inflation is inevitable because every country out there is funding its own stimulus plans. And given the opportunity to print more dollars, I wouldn’t be surprised to see much higher inflation inevitably by the end of the year. Bitcoin will perform alongside gold. Another long-term risk to watch is US President Joe Biden’s stance on China. We see a massive power shift over the next four years when the China-US trade war tensions come into question, and this will result in gold trading at premium level.