Bitcoin will take a market share of gold in 2022 as digital assets become more widespread, Goldman Sachs analyst Zach Pandle said in an analysis of the bank’s customers, Reuters reported.
Citing a market capitalization of $ 700 billion in bitcoin, compared to about $ 2.6 trillion in gold held as an investment, US investment bank Goldman Sachs said it was currently the leading cryptocurrency has a 20% market share for “storage of value”.
The term “value storage” usually describes assets that can maintain their value over time without depreciation, such as precious metals or certain currencies, explains BNR.
Bitcoin is “likely” to take a bigger share over time, Goldman Sachs said in presenting its list of forecasts for 2022.
Bitcoin supporters have long touted cryptocurrency as “digital gold”.
In a hypothetical scenario in which bitcoin takes a market share of 50% over the next five years, its price could reach just over $ 100,000, the US bank predicts.
About $ 46,000 was traded on Wednesday, trying to rise again after a sharp decline in early December by more than 30%, after reaching its all-time high of about $ 69,000 in November 2021.
Bitcoin may have applications outside of “value storage”, with digital asset markets themselves being much larger than Bitcoin itself, but we believe that comparing its market capitalization with gold can help determine parameters for plausible results. the return on bitcoin, “Pendell wrote.
High energy consumption in bitcoin mining may “remain an important obstacle” to the institutional acceptance of cryptocurrency, according to a Goldman Sachs analysis.
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