Bitcoin $100K possible by chipping away at gold’s market share: Goldman Sachs

Bitcoin (BTC) failed to adjacent 2021 supra the long-expected $100,000 level, but experts judge the intelligence skyline is inactive achievable by taking gold’s marketplace share, albeit implicit a much extended period.

In a enactment released to investors connected Tuesday, Goldman Sachs co-head of planetary FX and EM strategy Zach Pandl hypothesized that if the largest cryptocurrency could overtake 50% of the store of worth marketplace stock implicit the adjacent 5 years, BTC’s terms would summation to conscionable implicit $100,000, marking a compound annualized instrumentality of 18%.

While the existent marketplace capitalization of BTC is adjacent to $884 billion, Goldman Sachs estimates the float-adjusted marketplace headdress of Bitcoin is nether $700 billion, accounting for one-fifth of the “store of value” market. The said marketplace is not crowded, though. The lone different subordinate of Goldman’s store of worth marketplace is gold, with an disposable concern astatine $2.6 trillion.

Despite its ups and downs, Bitcoin inactive managed to apical Goldman Sachs’ 2021 instrumentality scorecard with implicit 60% yearly returns. Gold is placed astatine the bottommost successful the aforesaid illustration with a 4% yearly loss.

Yearly returns scorecard. Source: Goldman Sachs Global Investment Research

Related: Wait-and-see approach: 3/4 of Bitcoin proviso present illiquid

Goldman Sachs experts judge that the request for BTC volition beryllium unharmed by the blistery statement surrounding the Bitcoin network’s vigor consumption. While a caller survey claims the Bitcoin ecosystem consumes 8 times the vigor of Google and Facebook combined, New York Digital Investment Group estimates that Bitcoin mining volition not correspond more than 0.4% of planetary energy consumption implicit the adjacent decade.

As elaborate successful a Cointelegraph New Year Special, Bitcoin saw a bumpy thrust implicit the past year. Many experts believed that $100,000 was an casual people for the flagship cryptocurrency for 2021. However, BTC closed the twelvemonth astir $47,000 aft touching an all-time precocious of astir $69,000 successful November, falling abbreviated of analysts’ ambitious target.