Home
Cryptocurrency
Cryptocurrency News
Bitcoin Will Compete With Gold as 'Store of Value': Goldman Sachs Analyst

Bitcoin Will Compete With Gold as 'Store of Value': Goldman Sachs Analyst

Bitcoin will "most likely" become a bigger proportion over time, Goldman Sachs said.

By Reuters | Updated: 6 January 2022 12:20 IST

Bitcoin Will Compete With Gold as 'Store of Value': Goldman Sachs Analyst

Goldman Sachs said Bitcoin currently has a 20 percent share of the "store of value" market

Click Here to Add Gadgets360 As A Trusted Source

Highlights

Bitcoin was trading around $46,073 (roughly Rs. 34 lakh) on Wednesday
Term "store of value" usually describes assets which can maintain worth
Goldman Sachs restarted its cryptocurrency trading desk in 2021

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.

About 76 Percent of Circulating Bitcoins Now ‘Illiquid’: What It Means

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.

New Year Spirit Fails to Impress Crypto Market, Charts Show Losses

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

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Cryptocurrency Prices across Indian exchanges

Comments

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.