Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities


Gold Proponent Says Bitcoin Is Millennial Gold

December 24, 2020 at 15:47 by Mark Stevenson

During an interview with Bloomberg, gold supporter Dennis Gartman said that he does not understand Bitcoin (BTC), but does not rule out the continuous growth of the flagship cryptocurrency for decades. Gartman, who is the chairman of the University of Akron & Foundation Endowment Fund said:

Bitcoin is the gold of millennials. I will never understand Bitcoin … and leave it to people who are wiser, smarter or bolder than me.

Why Gartman prefers Gold to Bitcoin?

Gartman’s fear of investing in Bitcoin has to do with regulation. In his opinion, the central banks of countries around the world will tighten control over monetary policy, which will lead to a collapse of the Bitcoin price to zero.

Read also: Canadian Economist Calls Bitcoin a Bubble Amid a New Price High

While Gartman remains a proponent of gold, he acknowledges the competition from Bitcoin:

There are those who have succeeded [in investing in Bitcoin]. I wish them to continue to prosper, but I prefer to own gold myself.

However, the chairman of the investment fund does not recognize the deflationary model as the reason for the rise in the price of Bitcoin. According to Gartman, there are thousands of altcoins that offset the effect of the limited supply of Bitcoin.

When asked by a journalist whether the price of one bitcoin could rise to $100,000 before depreciating, Gartman replied:

As John Maynard Keynes once said, the market can remain illogical for longer than you or I can remain solvent, and right now seems to me to be utterly illogical.

Read also: Robert Kiyosaki: Buy Bitcoin Now, Next Stop Is $50,000

He said that enthusiasm for Bitcoin and cryptocurrencies will fade over time, but added that it could be another two, three, or even four decades before that.

Bitcoin is gold for millennials

As a reminder, earlier in November, the Winklevoss brothers called Bitcoin the new gold and predicted its growth to $500,000. In their opinion, Bitcoin is a new store of value that can surpass gold, but for this, its price must increase 25 times.

Also, Cory Bernardi, the Australian ex-senator has referred to Bitcoin as “gold for millennials.” According to him, the demand for Bitcoin is “getting stronger.”

Meanwhile, on December 23, Bitcoin made another attempt to break through to historical highs. However, BTC bulls faced a massive resistance at the $24,063 level and were forced to retreat.

Today, Bitcoin is now trading at $23,205 at 15:40 GMT on Bitstamp.

If you have any questions and comments on Bitcoin today, use the form below to reply.

Leave a Reply