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

Bitcoin
(BTC)
failed
to
close
2021
above
the
long-expected
$100,000
level,
but
experts
believe
the
psychological
horizon
is
still
achievable
by
taking
gold’s
market
share,
albeit
over
a
more
extended
period.

In
a
note

released

to
investors
on
Tuesday,
Goldman
Sachs
co-head
of
global
FX
and
EM
strategy
Zach
Pandl
hypothesized
that
if
the
largest
cryptocurrency
could
overtake
50%
of
the
store
of
value
market
share
over
the
next
five
years,
BTC’s
price
would
increase
to
just
over
$100,000,
marking
a
compound
annualized
return
of
18%.

While
the
current
market
capitalization
of
BTC
is
close
to
$884
billion,
Goldman
Sachs
estimates
the
float-adjusted
market
cap
of
Bitcoin
is
under
$700
billion,
accounting
for
one-fifth
of
the
“store
of
value”
market.
The
said
market
is
not
crowded,
though.
The
only
other
participant
of
Goldman’s
store
of
value
market
is
gold,
with
an
available
investment
at
$2.6
trillion.

Despite
its
ups
and
downs,
Bitcoin
still
managed
to
top
Goldman
Sachs’
2021
return
scorecard
with
over
60%
yearly
returns.
Gold
is
placed
at
the
bottom
in
the
same
chart
with
a
4%
yearly
loss.


Yearly
returns
scorecard.
Source:
Goldman
Sachs
Global
Investment
Research



Related:




Wait-and-see
approach:
3/4
of
Bitcoin
supply
now
illiquid

Goldman
Sachs
experts
believe
that
the
demand
for
BTC
will
be
unharmed
by
the
hot
debate
surrounding
the
Bitcoin
network’s
energy
consumption.
While
a
recent
study
claims
the
Bitcoin
ecosystem
consumes
eight
times
the
energy
of

Google
and
Facebook
combined
,
New
York
Digital
Investment
Group
estimates
that
Bitcoin
mining
will
not
represent

more
than
0.4%
of
global
electricity
consumption

over
the
next
decade.

As
detailed
in
a

Cointelegraph
New
Year
Special
,
Bitcoin
saw
a
bumpy
ride
over
the
last
year.
Many
experts
believed
that
$100,000
was
an
easy
target
for
the
flagship
cryptocurrency
for
2021.
However,
BTC
closed
the
year
around
$47,000
after
touching
an
all-time
high
of
around
$69,000
in
November,

falling
short
of
analysts’
ambitious
target
.

read original article here