Deutsche Bank strategy Jim Reid suggested in his final customer note that the nominal money would be “a temporary fad” in the history of money.

Gold is having a good week. Precious metal, while the dollar was losing value, approached its highest levels in its history. The record price was $ 1920 in 2011, while the ounce of gold news went live at $ 1887.

The leading Deutsche Bank strategy Jim Reid described himself as a “gold bug” in his final customer note. The term gold bug is used for those who are fond of gold and believe that gold is the most important investment tool.

Reid thinks that fiat money will be a temporary fad in the long-term history of money. He also states that gold is definitely a means of protection against fiat money, and more importantly, according to him, is also the presence of a transition to the next monetary system.

The strategist, while arguing that gold is a hedge against nominal money, concluded that stocks tend to be much better in the long run, based on total return.

2030 goal

While Reid did not talk about Bitcoin and crypto in any way, the 84-page report published in December last year, which he prepared, predicted that by 2030, demand for alternative currencies would increase and digital currencies could eventually replace cash.

Reid estimates that people’s dematerialized means of payment and increased demand for privacy could attract more people to digital currencies.

The report also warned that inflation could increasingly settle in the financial system and doubts about the sustainability of fiat money. As a direct result of this, Reid says demand for alternative currencies will likely be significantly higher by 2030.

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According to Reid, the forces that hold the current system based on fiat money look fragile and can be devastated in the 2020s.

On the other hand, the same report included a projection of the future user base of cryptocurrencies, based on the number of users of both internet and Blockchain wallets. Accordingly, ultimately, Blockchain wallet users will reach 200 million by 2030.

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