Goldman Sachs Predicts Bitcoin Will Replace Gold As A Store Of Value

JAKARTA - Bitcoin is expected to take over the market share of gold trading in 2022. This is because the digital asset is now becoming more widely adopted. This was revealed by Goldman Sachs analyst Zach Pandl in a research note to his clients.

Citing bitcoin's $700 billion market cap, compared to around $2.6 trillion worth of gold held as an investment, Goldman Sachs said that cryptocurrencies currently have a 20% market share in the "store of value".

Bitcoin will “likely” become a larger proportion over time, said Goldman Sachs, on its list of 2022 predictions.

In this hypothetical scenario where bitcoin grabs 50% of the market share, its price would reach over $100,000, according to the note.

Bitcoin was trading around $46,073 on Wednesday, January 5, after struggling to gain profits after falling sharply in early December. In November, it had hit an all-time high of 69,000 US dollars.

“Bitcoin may have applications for more than just a “store of value” – and the digital asset market is much bigger than Bitcoin – but we think that comparing its market cap to gold can help put parameters on the returns that make sense for Bitcoin returns,” wrote Pandl who also wrote. quoted by Reuters.

The term "store of value" usually describes an asset that can maintain its value over time without depreciating, such as a precious metal or some currencies. Goldman Sachs itself has started trading cryptocurrencies in 2021.