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

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Although Bitcoin (BTC) failed to finish 2021 above the long-anticipated $100,000 threshold, analysts believe the psychological horizon can 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) acquire 50% of the store of value market share over the next five years, the price would rise to just over $100,000, representing an 18% compound annualised return.

Bitcoin’s current market worth is close to $884 billion. Nevertheless, Goldman Sachs estimates that Bitcoin’s float-adjusted market cap is under $700 billion. Accounting for one-fifth of the “store of value” market. However, the said market is not 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 over 60% annually. Gold is at the bottom of the same chart, with a 4% annual loss.

Bitcoin ecosystem consumes eight times the energy of Google and Facebook combined

The intense debate over the BTC network’s energy consumption, according to Goldman Sachs researchers, will have no effect on BTC demand. Recent research suggests that the Bitcoin ecosystem consumes eight times the energy of Google and Facebook combined. However, the New York Digital Investment Group predicts that Bitcoin mining will only account for 0.4% of world electricity consumption over the next decade.

In comparison, Bitcoin has had a rocky year. Many experts thought that $100,000 would be a simple aim for the flagship cryptocurrency in 2021. BTC, on the other hand, finished the year around $47,000. After hitting an all-time high of around $69,000 in November, falling short of analysts’ lofty expectations.

Bitcoin fails ‘worst-case scenario’ monthly close for the first time, starts December sub-$57K

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