Bitcoin $100K possible by chipping away gold’s market share: Goldman Sachs

Analysts at Goldman Sachs predicted that Bitcoin could surpass $100,000 and take market share from gold as a store-of-value.
Bitcoin (BTC), although it failed to close 2021 at the long-anticipated $100,000 level, experts believe that the psychological horizon can still be achieved by taking over 50% of the store-of-value market share over the next five-years. However, Goldman Sachs estimates that the float-adjusted Bitcoin market cap is less than $700 billion, accounting only for one-fifth the “store-of-value” market. However, the market is not overcrowded. Goldman Sachs’ store of value market is the only other participant. It has an investment of $2.6 trillion. Bitcoin managed to surpass Goldman Sachs’ 2021 return scorecard by more than 60% annually. The same chart shows gold at the bottom with a 4% annual loss.Yearly returns scorecard. Source: Goldman Sachs Global Investment ResearchRelated to: Wait-and see approach: 3/4 of Bitcoin supply is now illiquidGoldman Sachs experts think that the debate over the energy consumption of Bitcoin will not affect the demand for BTC. A recent study found that the Bitcoin ecosystem consumes eight-times the energy of Facebook and Google combined. However, New York Digital Investment Group estimates Bitcoin mining will not account for more than 0.4% global electricity consumption over 10 years. This is despite the fact that Bitcoin has had a bumpy ride in the last year. Experts believed that $100,000 would be a good target for the flagship cryptocurrency. BTC ended the year at $47,000, despite reaching an all-time high of $69,000 in November. Analysts were disappointed that it fell short of their ambitious target.

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