Analysts at the investment bank believe the price could soar in the next five years Goldman Sachs (NYSE:GS)’ analysts believe bitcoin could reach US$
Analysts at the investment bank believe the price could soar in the next five years
Goldman Sachs (NYSE:GS)’ analysts believe bitcoin could reach US$100,000 before within four years if more investors begin to view the cryptocurrency as a store of wealth.
The investment bank calculates that bitcoin currently comprises 20% of the ‘store of value’ market, with the stock of bitcoin available for investment roughly valued at US$700mln.
In comparison, gold, which for a long time has been seen as the primary viable and safe option for store of value, is estimated to have US$2.6bn worth of gold available for investment.
In a hypothetical situation put forward by Goldman analyst Zach Pandl, if bitcoin were to achieve a 50% of the store of value market, its price will reach US$100,000.
“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 added.
The crypto’s market cap is currently at US$700bn, with gold’s valued at US$2.6tln.
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