Jesse Powell, Cathie Wood, President Nayib Bukele, and now Goldman Sachs - faith in Bitcoin’s road to surpassing $100,000 continues to grow. The New York City-based investment management firm has joined many in predicting that Bitcoin will not only reach the much circulated milestone, but surpass it as well.
In a recent report, Goldman Sachs shared that, within the next 5 years, Bitcoin could more than double from its current price point of nearly $43,000, at the time of writing. Zach Pandl, the co-head of global foreign exchange, rates and emerging market strategy for Goldman Sachs, said: "We think that Bitcoin's market share will most likely rise over time as a byproduct of broader adoption of digital assets.”
Bitcoin Expected to Take from Gold’s Market Share
The prediction stems from a comparison to gold, as Pandl argues that Bitcoin will continue to take from gold’s market share as it hangs back at under $1,800 per ounce. A “store of value” describes assets, like precious metals (gold) and currencies (Bitcoin), that are expected to depreciate very little over a long period of time. According to Pandl, Bitcoin currently makes up about 20% of the current store of value, and could go on to make up 50% as it goes neck to neck with gold. For context, compared to the approximate $2.6 trillion worth of gold owned as an investment, Bitcoin has a market capitalization of $700 billion.
"Bitcoin may have applications beyond simply a ‘store of value'…we think that comparing its market capitalization to gold can help put parameters on plausible outcomes for Bitcoin returns," added Pandl. Gold is a long-standing asset that many recognize and understand, and the ability to compare it so closely with Bitcoin demonstrates the digital coin’s steadfast merge into mainstream adoption.
With Digital Asset Adoption on the Rise, Investors Big and Small Turn to Bitcoin
An increasing number of top fund managers have invested in Bitcoin, such as Stanley Druckenmiller, Paul Tudor Jones, and George Soros. It is now even easier for individual investors to follow suit, as regulators have approved exchange-traded funds (ETFs) that track Bitcoin futures prices and reduce overall risk, allowing investors to speculate on the cryptocurrency's future price.
Goldman Sachs is supporting this prospect for its own clientele, as Pandl’s client-facing advocacy for Bitcoin outlines its potential to take from gold’s market share in 2022, as digital assets become more widely adopted.
The Ongoing Road to $100k
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