Zach Pandl, analyst at Goldman Sachs, assured that bitcoin could compete with gold as a store of value, if the cryptocurrency continues with its listing streak throughout 2022.
In a scenario where digital assets are more widely adopted, Goldman Sachs found that, compared to the nearly $ 2.6 trillion of gold held as an investment, bitcoin has a 20% market share of “ reserve of value ”. This, based on the market capitalization of 700,000 million dollars that bitcoin currently has.
“Bitcoin may have applications beyond a simple ‘store of value’ – and digital asset markets are much larger than Bitcoin – but we believe that comparing its market capitalization to gold can help to benchmark results. plausible for the yields of Bitcoin ”, assured the specialist.
For example, bitcoin was trading at around $ 46,073 on Wednesday, having struggled to make a profit after falling sharply in early December. By November, it had hit an all-time high of $ 69,000.
In a hypothetical scenario in which bitcoin monopolizes a 50% share of this market, its price would reach just over $ 100,000, according to the note. As such, it is “very likely” that Bitcoin will acquire a larger share over time, Goldman Sachs said, in a list of predictions for 2022.
The term “store of value” often describes assets that can maintain their value over time without depreciating, such as precious metals or some currencies. It should be noted that Goldman Sachs restarted its cryptocurrency trading desk in 2021.
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