Bitcoin is likely to take more market share from gold as a “store of value” thanks to broader adoption of digital assets and bitcoin’s scaling solutions, according to a Tuesday report by Goldman Sachs.
The cryptocurrency’s price could surpass $100,000 in a hypothetic scenario when bitcoin
BTCUSD,
takes up 50% of the “store of value” market over the next five years, assuming no growth in overall demand for stores of value, Zach Pandl, co-head of global FX, rates & EM strategy, wrote in notes.
A store of value refers to assets that maintain their value without depreciating. Bitcoin supporters have long touted the cryptocurrency as the “digital gold.”
Bitcoin currently takes up about 20% of the “store of value” market, with a float-adjusted market capitalization of under $700 billion, compared to $2.6 trillion worth of gold held by the public for investment purposes, according to Pandl.
Bitcoin is recently trading at around $46,390, down 1% over the past 24 hours and down more than 30% from its November high of $68,990.
The high energy consumption of bitcoin mining could “remain an important obstacle” on institutional adoption of the cryptocurrency, the report says.
