Renowned global investor Frank Holmes talks gold vs. bitcoin, the evolution of money, and the current trends disrupting the financial industry, in the latest episode of Off the Ledger with Jason Butcher.
In the past two years, there has been a lot of excitement around cryptocurrency, bitcoin, and blockchain. Beyond the buzzwords however, lies a complicated process of coding, creating, and ‘mining’. So what is crypto-mining you ask? We have the answers, as there’s no one better to break it all down than our most recent Off the Ledger guest, Frank Holmes.
Frank Holmes is the CEO of U.S. Global Investors and an expert in the precious metals and mining industries. He is also the chairman of the first publicly traded crypto-mining company, HIVE Blockchain. HIVE utilizes green energy-powered data centres to mine Ethereum and Bitcoin coins on the blockchain, effectively bridging the gap between the crypto industry and traditional trading.
Frank is an expert on all things trade, crypto, and especially gold, as one of the investment world’s leading authorities on the metal. His vast experience has made him a successful entrepreneur and thought leader in the precious metals and crypto mining space.
This episode covers everything from the creation of HIVE to the future of NFTs, El Salavador’s funny crypto business, regulations, and all the way towards the ‘metaverse’. Frank, a big advocate for innovation, supports NFTs, claiming that they democratize creativity and art, but is wary of governments over-regulating. He stresses:
“The government has to be really concerned that regulations do not stifle innovation and competition.”
Additionally, as a gold aficionado, Frank compared gold and bitcoin throughout the episode, drawing similarities, but also underlying differences behind investment strategies. As he puts it, “whereas gold is the fear trade, bitcoin is the greed trade.”
Frank expands on his theory, claiming that fear of government control and the volatility of fiat was the main factor behind the gold boom in the past, but greed is what’s driving the younger generation to utilize the ‘first mover advantage’. Furthermore, Frank maintains that:
“Bitcoin is another one of those parts that’s very similar to gold, but you can’t wear it, and you need electricity.”
The episode goes on to discuss the approaches G7 countries are taking on trade and crypto, and their ramifications. It also highlights an important aspect for both HIVE’s operations and the blockchain-powered industry at large: high-performing data centers. As Frank puts it:
“When we say we’re a data center business, it’s easy to get a bank account. We say we’re crypto, oh no, we’re bad guys.”
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