Citing Bitcoin's $700 billion market capitalisation,
compared to the around $2.6 trillion worth of gold owned as an investment,
Goldman Sachs said that the cryptocurrency currently has a 20 percent share of
the "store of value" market.
Bitcoin will "most likely" become a bigger
proportion over time, Goldman Sachs said, in a list of 2022 predictions.
In a hypothetical scenario in which Bitcoin grabs a 50
percent share of this market, its price would reach just over $100,000, the
note said.
Bitcoin was trading around $46,073 on Wednesday, having
struggled to make gains after falling sharply in early December. In November,
it had hit an all-time high of $69,000.
"Bitcoin may have applications beyond simply a
"store of value" - and digital asset markets are much bigger than
Bitcoin - but we think that comparing its market capitalisation to gold can
help put parameters on plausible outcomes for Bitcoin returns," Pandl
wrote.
The term "store of value" usually describes assets
which can maintain their worth over time without depreciating, such as precious
metals or some currencies.
Goldman Sachs restarted its cryptocurrency trading desk in
2021. © Reuters
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