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Goldman Sachs says bitcoin will compete with gold as “store of value” -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: This illustration depicts the virtual currency Bitcoin. It was taken on October 19, 2021. REUTERS/Edgar Su

LONDON Reuters – Digital assets will overtake gold market share by 2022, Goldman Sachs (NYSE 🙂 analyst Zach Pandl stated in a research note for clients.

Goldman Sachs pointed out that bitcoin has a $700 Billion market capitalization and gold is worth around $2.6 Trillion. This means that cryptocurrency holds a 20% market share in the “stores of value”.

Goldman Sachs predicted that Bitcoin would “most probably” increase its share over the course of time in his list 2022 predictions.

According to the note, bitcoin’s price would just surpass $100,000 in a scenario where it grabs 50% of the market.

Bitcoin traded at $46,073 Wednesday after struggling to gain gains following a sharp fall in December. The cryptocurrency reached an all time high of $69,000 in November.

Pandl stated that Bitcoin may be more than a store of value – digital asset markets can be much larger than Bitcoin. However, we believe that comparisons between Bitcoin’s market capitalization and gold could help to establish parameters for possible outcomes for Bitcoin returns.

The term “stored value” is used to describe assets that are able to retain their value over time and not lose it, like precious metals and some currencies.

Goldman Sachs has reopened cryptocurrency trading in its office since 2021.

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