Financial Experts Forecast Gold Price Spiking with USD Debt Crisis but is Bitcoin as a Safe Haven?
Experts: Gold to Surge Over USD Crisis and Fiscal Woes, But What About Bitcoin – Digital Gold?
Despite the impending dollar crisis and the growing fiscal gap in the United States, Bank of America and Goldman remain bullish on gold, expecting it to record a surge. But what about the digital gold – Bitcoin?
Gold to Soar Next Year
Gold has always been preferred as a great investment option and hedge against losses in times of crisis. With the impending dollar crisis and fiscal gap getting bigger, experts expect that gold will take a surge coming year.
The Bank of America Merril Lynch, the price of gold will soar due to the increasing concerns over the US budget deficit as well as the country’s trade war with one of its biggest trading partner, China. As of this writing, gold is trading almost $1200, and is expected to bounce back to $1,300 in 2019.
The global head of commodities and derivatives research, Francisco Blanch, was quoted saying that,
“We’re still pretty constructive longer term on gold.”
He added that:
“In the short run, the effects of a strong dollar, higher rates dominate. But in the long run, a huge U.S. government budget deficit is pretty positive for gold.”
When it comes to the trade war, Blanch clearly noted that:
“Eventually the trade wars are going to come back to bite the U.S. It could take longer, it could take shorter, eventually it’s going to happen, but maybe the Fed acknowledges it sooner, which is what people are going to be looking for in terms of getting more bullish on gold. We know that trade wars are not good for the economy.”
Downturn of US Economy
The owner of the largest hedge fund in the world, Ray Dalio, predicted that a downturn of the US economy is impending, warning that this could happen in two years.
Moreover, according to the Congressional Budget Office, federal spending along with the US administration’s tax cut will have a deficit of $1 trillion in their budget in 2020.
The Case of Bitcoin, The Digital Gold
Recently, Mike Novogratz, the founder and CEO of Galaxy Digital, said that,
“Bitcoin, the digital gold, will see more millennials adopt it as they turn older. He pointed out that it’s become a digital store of value — it is the first digital asset that people are now vesting with store of value.”
“As you start getting custody and service providers in and around the system, it allows pension funds and endowments to get involved.”
Another expert, Dan Hedl, the co-founder of ZeroBlock, aired his views on the matter via tweeter, saying that:
“Gold achieves irreversibility through its refractory chemistry and the time-based entropy of extraction. Bitcoin offers similar irreversibility through complex mathematics and software, based on a time-stamped public chain of blocks.”