Goldman Sachs analyst Zach Pandl said that Bitcoin will take market share away from gold in 2022 as digital assets become more widely accepted.
Goldman Sachs claims that bitcoin has a 20% share of the “store of value” market, citing the cryptocurrency’s $700 billion market capitalization vs the $2.6 trillion worth of gold held as an investment.
“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 capitalization to gold can help put parameters on plausible outcomes for Bitcoin returns,” Pandl wrote.
It could hit $100,000 if investors treat it like gold.
Goldman previously noted that bitcoin was among the best-performing assets of the year in 2021, despite underperforming relative to other assets considering its volatility.