Goldman Sachs: Bitcoin is Slowly Taking Gold’s Market Share
After criticizing that Bitcoin is not a good investment plan, Goldman Sachs is now recommending its clients to try Bitcoin as it is slowly replacing gold!
According to its latest 2020 research note to investors, the banking giant said Bitcoin is more than just a “store of value,” and likely has bigger applications to come. Moreover, it is slowly taking the market share from gold.
Bitcoin Can Hit $100,000!
The very first cryptocurrency – Bitcoin is now considered a “store of value” by most. As the available quantity is limited and highly valued, Bitcoin has pushed aside gold and is considered by many to be a perfect alternative investment. This idea was disputed by many banks, calling Bitcoin a very risky investment because it was too volatile.
While this is true, virtual currency has given amazing returns to millions of people who invested in the early days. And the huge influx of capital into Bitcoin lately is something that puzzles banks and countries around the world. Understanding its potential, Goldman Sachs now refers to Bitcoin as a risky, but worthwhile investment.
So said the bank’s research analyst, Zach Pandl, in his latest note to clients. Additionally, he cited Bitcoin’s $700 billion market cap versus $2.6 billion for gold and said the cryptocurrency has a 20% share of the “store of value” market. .
To be called a “store of value”, the asset must retain its value over time without depreciating, such as precious metals or certain currencies. Stating that Bitcoin will “most likely” become a larger proportion over time, the note predicts that the coin’s value could soon reach $100,000.
Finally, Pandl explains that Bitcoin may have more applications based on its technology than simply being a “store of value”, and they believe that “comparing its market capitalization to gold can help set parameters on plausible results for Bitcoin returns”.