It Doesn't Have To Be Gold Vs. Bitcoin - Max Keiser
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(Kitco News) - In the war between gold and bitcoin, Max Keiser has taken on the role of mediator.
Keiser was an early adopter of the cryptocurrency, first purchasing the digital coin when a single bitcoin was valued at $1 in 2011. But in 2017, when its value had risen to record highs at nearly $20,000 a coin, he did not sell; he said he saw it going even higher to more than $100,000 a coin.
“I haven’t sold any bitcoin because my price target is $100,000 and beyond,” he said.
Noting the cryptocurrency’s history of volatility, Keiser said “this is the way it trades, because it is making a huge transition from store of value… to medium of exchange, to unit of account; by the time it gets to $100,000, the volatility will ebb.”
But Keiser said his advocacy for bitcoin does not make him a critic of metals trading; he still holds significant amounts of gold and silver.
“I think there’s a place to own both,” he said. “Gold price is going to go higher once it gets out of this range where it’s kind of stuck because the same people that are bringing us quantitative easing are also trying to keep the price of gold from moving higher, because it would take the focus off the dollar,” he said, noting the dollar’s sinking legitimacy across the world.
Spot gold last traded at $1,295.60 an ounce, while bitcoin last traded at $7,980.30.
Bitcoin may still have a long way before it catches up to gold, he said, but the increasingly competitive dynamic of the market posed some challenges for the precious metal.
“Gold has not really had to market itself. For thousands of years, people bought gold,” he said. “But now that there is a competitor, with bitcoin, gold should market itself better.”
Earlier this month gold-bitcoin tensions rose as Grayscale Investments, digital currency asset manager, launched a Twitter campaign that saw the hashtag #DropGold trending worldwide on the platform.
The issue in these disputes, Keiser said, are gold bugs. “The gold bugs are taking themselves too seriously,” he said. “They think gold is the answer to all their issues.”