Goldman Sachs Says Bitcoin Will Compete With Gold in Store of Value
5/28/2022
The presence of cryptocurrencies , especially Bitcoin, continues to show escalating achievements thanks to the various forms of adoption made by its activists.
One reflection that looks like what is done by Mexican retail chain, Elektra, after providing payment options via Bitcoin.
Thus, the presence of Bitcoin as a mode of transaction gradually began to spark along with several other users who placed Bitcoin as a store of value.
In fact, Goldman Sachs recently included a research note stating that Bitcoin can be matched with gold in terms of a store of value.
Bitcoin can match gold in terms of store of value
Quoted from Reuters , the US multinational investment banking and financial services company Goldman Sachs has just published a research note to clients that states that Bitcoin has the potential to take gold market share by 2022.
The projections listed by Goldman Sachs are based on the fact that this digital asset is increasingly being adopted thanks to the variety of accessibility that is also available.
Based on records, until now the market capitalization of Bitcoin has been at US $ 700 billion. This achievement includes the other 20 percent market share that places Bitcoin as a store of value .
In a hypothetical scenario, if Bitcoin's share of the store of value increased to 50 percent, Goldman Sachs predicts Bitcoin's price could touch over $100,000 with an annual rate of return of 17 percent or 18 percent.
Goldman Sachs analyst Zach Pandl also added that the figure could potentially be higher over time on the list of predicted proportions in 2022.
Therefore, Pandl said it is not impossible that at any time Bitcoin will be the top option to be used as a store of value while with its capitalization value to match the capitalization of gold which is now perched at US $ 2.6 trillion.
Bitcoin has long been referred to as a digital gold asset with the advantage that it does not need to pay interest or dividends.
Bitcoin itself had a record high market value last November of US $ 69,000 or has jumped more than 4,700 percent since 2016.
To note, store of value or store of value is the ability of an asset that can maintain its value over time without depreciating like precious metals or some other currencies.
