Goldman Sachsshared their predictions for a scenario where the use of Bitcoin as a store of value against gold for investors is increasing.
Zach Pandl, co-head of currency strategy at Goldman Sachs, said in a research note to clients on Tuesday that Bitcoin, along with the “potential from Bitcoin-specific scaling solutions,” could eventually seize market share from gold as a “byproduct” of greater adoption.
In the pandl note:
Hypothetically, if Bitcoin’s share of the ‘store of value’ market rises to 50% in the next five years (no growth in aggregate demand for stores of value), Bitcoin (BTC) “The price could rise above $100,000, which will compound the annual interest rate of 17-18% (taking into account the growth in BTC supply over time).”
Assuming the price of gold is $1,800 per ounce, Goldman estimates that the public holds about $2.6 trillion in gold for investment purposes.
Pandl wrote that Bitcoin’s float-adjusted market capitalization is currently just under $700 billion, making it Bitcoin’s current “store of value”gold and bitcoinHe added that it means that it has a share of approximately 20% in the ) market.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.