By cutting the market share of gold, Bitcoin could reach $100,000: Goldman Sachs

Bitcoin (Bitcoin) Failed to close in 2021 above the expected level of 100,000 US dollars, but experts believe that by occupying gold’s market share, the psychological vision can still be achieved, although it will take longer.

In notes Released For investors on Tuesday, Goldman Sachs Global Foreign Exchange and Emerging Markets Co-Head Zach Pandl hypothesized that if the largest cryptocurrency can exceed 50% of the store of value market share in the next five years, then the price of BTC will rise to just over 100,000 The US dollar marks a compound annualized rate of return of 18%.

Although the current market value of BTC is close to US$884 billion, Goldman Sachs estimates that the floating-adjusted market value of Bitcoin is less than US$700 billion, accounting for one-fifth of the “store of value” market. However, the aforementioned market is not crowded. The only other participant in the Goldman Sachs Store of Value market is gold, with available investment of US$2.6 trillion.

Despite its ups and downs, Bitcoin still tops Goldman Sachs’s 2021 return scorecard with an annual return rate of more than 60%. Gold is at the bottom of the same chart, with a 4% annual loss.

Annual return scorecard.Source: Goldman Sachs Global Investment Research

related: Wait-and-see attitude: 3/4 of the Bitcoin supply is now lacking liquidity

Goldman Sachs experts believe that the fierce debate surrounding the energy consumption of the Bitcoin network will not harm the demand for BTC.Although a recent study claims that the Bitcoin ecosystem consumes eight times more energy than Bitcoin Google and Facebook merge, New York Digital Investment Group estimates that Bitcoin mining will not represent Account for more than 0.4% of global electricity consumption In the next ten years.

As detailed in a Cointelegraph New Year Special, Bitcoin experienced ups and downs last year. Many experts believe that $100,000 is a simple target for the flagship cryptocurrency in 2021. However, after BTC hit an all-time high of approximately US$69,000 in November, the closing price this year is approximately US$47,000. Fail to meet analyst’s ambitious goals.