Goldman Sachs analyst Zach Pandl says Bitcoin will take market share away from gold by 2022 as digital assets become more widely used.
Quote Bitcoin’s Market capitalization of $700 billion (approximately 52,08,735 crore), compared with about $2.6 trillion (approximately 1.93.47.510 crore) worth of gold owned as an investment, Goldman Sachs said electronic money currently accounts for 20% of the “value store” market share. Bitcoin price in India stand at Rs. 34.1 lakh as of 12 noon IST on January 6.
Bitcoin “most likely” will become a larger share over time, Goldman Sachs said, in a list of predictions for 2022.
In a hypothetical scenario in which Bitcoin takes this 50% market share, its price would reach just over $100,000 (about Rs 75 lakh), the note said.
Bitcoin has been trading around $46,073 (about Rs 34 lakh) on Wednesday, having struggled to turn a profit after a steep drop in early December. In November, it hit an all-time high. is $69,000 (approximately Rs 51 lakh).
“Bitcoin may have applications for more than simply a ‘store of value’ – and the digital asset market is much larger than Bitcoin – but we think comparing the market capitalization of it with gold can help give reasonable outcome parameters for Bitcoin returns,” Pandl wrote.
The term “store of value” often describes assets that can maintain their value over time without depreciating in value, such as precious metals or certain currencies.
Goldman Sachs has restarted its crypto trading desk in 2021.
© Thomson Reuters 2022
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