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

Bitcoin could reach $100,000 by the end of 2020 if it can chip away at gold’s market share using tech that would allow for frictionless transactions. A team from Goldman Sachs has predicted this outcome, and there are a few indicators that point to their thesis being true.

The “will bitcoin reach 100k” is a question that has been asked for years. Goldman Sachs believes this is possible, but it will take time.

Although Bitcoin (BTC) failed to finish 2021 above the long-anticipated $100,000 threshold, analysts think that the psychological horizon may still be reached by capturing gold’s market share, but over a longer period of time.

In a letter to clients on Tuesday, Goldman Sachs co-head of global FX and EM strategy Zach Pandl predicted that if Bitcoin (BTC) to acquire 50% of the store of value market share in the next five years, the price would rise to just over $100,000, representing an 18% compound annualized return.

While Bitcoin’s current market worth is at $884 billion, Goldman Sachs believes that Bitcoin’s float-adjusted market cap is under $700 billion, accounting for one-fifth of the “store of value” market. However, the market is hardly overcrowded. Gold is the only other player in Goldman’s store of value market, with a $2.6 trillion available investment.

Despite its ups and downs, Bitcoin outperformed Goldman Sachs’ 2021 return forecast by more than 60% annually. Gold is at the bottom of the same chart, with an annual loss of 4%.

Bitcoin $100K possible by chipping away at gold’s market share: Goldman SachsScorecard for annual results. Goldman Sachs Global Investment Research is the source of this information.

Wait-and-see strategy: 3/4 of Bitcoin production is currently illiquid

The intense discussion about the Bitcoin network’s energy usage, according to Goldman Sachs researchers, will have no impact on BTC demand. While a recent study claims the Bitcoin ecosystem consumes eight times the energy of Google and Facebook combined, New York Digital Investment Group estimates that Bitcoin mining will not represent more than 0.4% of global electricity consumption over the next decade.

Bitcoin had a rough journey last year, as described in a Cointelegraph New Year Special. Many analysts predicted that the flagship cryptocurrency will hit $100,000 in 2021. BTC, on the other hand, finished the year at $47,000 after reaching an all-time high of $69,000 in November, falling short of analysts’ lofty expectations.

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  • when will bitcoin hit 100k
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