Bitcoin’s value could rise to $ 100,000 if the cryptocurrency takes market share from gold, Bloomberg reports, citing analysts at Goldman Sachs.
The bank estimates that the market capitalization of bitcoin, adjusted for turnover, is now less than $ 700 billion, which is about 20% of the total market share held by bitcoin and gold together. The value of gold available for investment is estimated at $ 2.6 trillion.
“If bitcoin’s share of the market for store of value” hypothetically “grows to 50% over the next five years, its price will rise to just over $ 100,000, with a cumulative annual return of 17-18%,” the publication reports, citing the head of Goldman. Sachs on FX and EM strategy by Zach Pandle.
Bitcoin is set to rise in value thanks to its growing popularity among institutional investors, the analyst said. An obstacle for this may be the high consumption of resources for the operation of the bitcoin network, but this circumstance will not stop the demand for the asset, says Pandla. The disadvantages of bitcoin and gold are similar, as interest and dividends are not paid from the cryptocurrency, the agency notes.
On November 10, the value of bitcoin for the first time in history reached $ 69,000; a few days before that, it repeatedly updated all-time highs. In early December, the value of the cryptocurrency dropped from $ 57,482 to $ 42,874. Prior to that, the drop in bitcoin to $ 42,000 was recorded at the end of September against the backdrop of a statement by the People’s Bank of China that transactions with cryptocurrency are illegal.
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