Gold may soon lose its status as the universal “store of value” for Bitcoin, US banks claim
Bitcoin could overtake gold’s market share in 2022, a Goldman Sachs analyst has said in a research note to clients as cryptocurrencies and digital assets rise in price and attract more and more investor interest.
According to a list of 2022 predictions from the bank’s analyst Zach Pandl, Bitcoin will “most likelyAcquire a larger share of the pie in the coming year than its current 20%, which was calculated by comparing the market value of the $ 700 billion cryptocurrency with the gold of about $ 2.6 trillion in global investment.
If Bitcoin’s price exceeds $ 100,000 per coin, it will secure a 50% market share, the memo said.
“Bitcoin may have applications beyond just a store of value – and markets for digital assets are much larger than Bitcoin – but we believe that comparing market value with gold can help set parameters for plausible results for Bitcoin returns“, wrote Pandl.
Concept “stock of value”Refers to assets that are able to retain their value for a long time without being depreciated, such as precious metals or certain currencies.
According to Coindesk data, Bitcoin traded around $ 46,456 around noon. 14.00 GMT Wednesday. The world’s largest cryptocurrency measured by market value had a tough year in 2021, falling in price from around $ 60,000 in April to almost $ 30,000 in July before reaching a record high of around $ 69,000 in November.
It has struggled to surpass the $ 50,000 benchmark in the past few weeks after a sharp drop in December. Still, crypto enthusiasts and market analysts are optimistic about the currency’s future, and many are predicting that Bitcoin will hit the long-awaited six-digit price sometime in 2022.
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