Goldman Sachs: Bitcoin Can Take a Good Bite Out of Gold in Next Years
Bitcoin can potentially take a good chunk off gold’s market share over time as a “byproduct” of increased adoption, Goldman Sachs’ head of foreign exchange strategy Zach Pandl said in a note to clients on Tuesday:
“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).”
According to Pandl, Bitcoin could surge along with innovations and “Bitcoin-specific scaling solutions.”
Goldman Sachs calculations estimate that the public holds roughly $2.5 trillion of gold for investment purposes, when taking a gold price of $1,800 per troy ounce.
Bitcoin’s float-adjusted market capitalization is just below $700 billion, Pandl notes, pointing out that this implies Bitcoin currently holds approximately 20% of the combined “store of value” (gold and Bitcoin) markets.
In November, Goldman’s Head of Energy Research, Damian Courvalingold, had said that gold “maybe becoming the poor man’s crypto.”
The post Goldman Sachs: Bitcoin Can Take a Good Bite Out of Gold in Next Years appeared first on iGaming.org.
Source: igaming
