By Oliver Gray
Investing.com - Goldman Sachs (NYSE:GS) co-head of global FX and EM strategy Zach Pandl said in a note to clients on Tuesday that Bitcoin will continue to take market share from Gold amidst broader adoption of digital assets, making the often touted price prediction of a $100,000 by crypto enthusiasts a possibility over the next five years.
“Hypothetically, if Bitcoin’s share of the ‘store of value’ market were to rise to 50% over the next five years (with no growth in overall demand for stores of value) its price would increase to just over $100,000, for a compound annualized return of 17-18% (accounting for growth in Bitcoin supply over time),” Pandl wrote in the note.
Goldman estimates that the public holds about $2.6 trillion of Gold for investment purposes, assuming a gold price of $1,800 per troy ounce. Bitcoin’s float-adjusted market capitalization is currently just under $700 billion, Pandl wrote, adding that this implies Bitcoin currently commands an approximate 20% share of the “store of value” (gold and Bitcoin) market.
Pandl also noted that Bitcoin can snag market share from gold over time as a “byproduct” of more adoption along with the potential from “Bitcoin-specific scaling solutions.”
Among cryptocurrencies, Bitcoin added 0.84%, Ethereum lifted 2.18% Binance Coin lost 0.55% and Cardano added 1.57%.