Bitcoin Is Not Stealing Gold's Thunder - Frank Holmes

Gold's rally has not been driven by cryptocurrency outflows, says Frank Holmes.
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(Kitco News) - Bitcoin has taken a hit last month while gold is rallying. Frank Holmes, CEO of U.S. Global Investors, told Kitco News that the crypto world is affecting all fund flows in the markets, not just gold, and that cryptocurrencies will ultimately make markets more efficient.

 "I think the real currency is going to be Ethereum, and they settle every 10 seconds. And it's a lot less expensive," Holmes said, "There's been 2,700 patents filed; major financial institutions to try to streamline their back-offices with this."

 Holmes said that the recent rally in gold is not related to outflows in Bitcoins, but sees a threat to conventional safe haven assets in new currencies. "The real issue is these new currencies that have attracted $3.5 billion. Young people would rather open an account at Coinbase in five minutes rather than two days at a brokerage firm and trade these cryptocurrencies," he said.

 Speaking on equities, Holmes said that a stock market correction would be triggered by something external, outside of the U.S., or a scandal with the president.

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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.