Bitcoin will take market share away from gold in 2022 as digital assets become more widely adopted, Goldman Sachs analyst Zach Pandl said in a research note to clients.
Citing Bitcoin’s $700 billion (roughly Rs. 52,08,735 crore) market capitalisation, compared to the around $2.6 trillion (roughly Rs. 1,93,47,510 crore) worth of gold owned as an investment, Goldman Sachs said that the cryptocurrency currently has a 20 percent share of the “store of value” market. Bitcoin price in India stood at Rs. 34.1 lakh as of 12pm IST on January 6.
Bitcoin will “most likely” become a bigger proportion over time, Goldman Sachs said, in a list of 2022 predictions.
In a hypothetical scenario in which Bitcoin grabs a 50 percent share of this market, its price would reach just over $100,000 (roughly Rs. 75 lakh), the note said.
Bitcoin was trading around $46,073 (roughly Rs. 34 lakh) on Wednesday, having struggled to make gains after falling sharply in early December. In November, it had hit an all-time high of $69,000 (roughly Rs. 51 lakh).
“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 capitalisation to gold can help put parameters on plausible outcomes for Bitcoin returns,” Pandl wrote.
The term “store of value” usually describes assets which can maintain their worth over time without depreciating, such as precious metals or some currencies.
Goldman Sachs restarted its cryptocurrency trading desk in 2021.
© Thomson Reuters 2022
Catch the latest from the Consumer Electronics Show on Gadgets 360, at our CES 2022 hub.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Technology News Click Here
For the latest news and updates, follow us on Google News.
