Goldman Sachs says bitcoin will compete with gold as “retailer of worth”

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LONDON, Jan 5 (Reuters) – Bitcoin will take market share away from gold in 2022 as digital belongings change into extra extensively adopted, Goldman Sachs analyst Zach Pandl mentioned in a analysis word to shoppers.

Citing bitcoin’s $700 billion market capitalization, in comparison with the round $2.6 trillion value of gold owned as an funding, Goldman Sachs mentioned that the cryptocurrency at present has a 20% share of the “retailer of worth” market.

Bitcoin will “almost definitely” change into a much bigger proportion over time, Goldman Sachs mentioned, in an inventory of 2022 predictions.

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In a hypothetical situation wherein bitcoin grabs a 50% share of this market, its value would attain simply over $100,000, the word mentioned.

Bitcoin was buying and selling round $46,073 on Wednesday, having struggled to make features after falling sharply in early December. In November, it had hit an all-time excessive of $69,000 .

“Bitcoin could have purposes past merely a “retailer of worth” – and digital asset markets are a lot larger than Bitcoin – however we predict that evaluating its market capitalization to gold can assist put parameters on believable outcomes for Bitcoin returns,” Pandl wrote.

The time period “retailer of worth” often describes belongings which may keep their value over time with out depreciating, similar to valuable metals or some currencies.

Goldman Sachs restarted its cryptocurrency buying and selling desk in 2021. read more

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Reporting by Elizabeth Howcroft; Modifying by Saikat Chatterjee

Our Requirements: The Thomson Reuters Trust Principles.

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