- Goldman Sachs among other commenters thinks Bitcoin is on its way to $100K due to increased adoption, and a possible future ‘flippening’ of gold in the store of value market.
- Despite hundreds of declarations of death by notable personalities, BTC recently marked its 13th year since block zero, among other achievements.
Investment management firm Goldman Sachs Group is convinced that Bitcoin (BTC) could achieve the $100,000 price prediction of market analysts. This is despite the digital asset’s recent persistence below the $50k mark. The firm bases its conviction on evidence of increased adoption of digital assets, saying this could increase Bitcoin’s share in the “store of value” market.
The “store of value market” comprises gold and Bitcoin, or what is touted as “digital gold.” Presently, Bitcoin’s float-adjusted market cap is just under $700 billion, or 20 percent of the store of value market, according to Goldman. On the other hand, the gold currently available for investment is $2.6 trillion.
Why Bitcoin may be on the road to $100K
Zach Pandl, co-head of global FX and EM strategy, said in a note on Tuesday that the $100K price would be achieved if Bitcoin’s store of value market share rose to 50 percent in the next five years. Such a scenario would result in a compound annualized return of 17 or 18 percent. El Salvador’s president Nayib Bukele also recently predicted the $100K top this year.
Additionally, the note said institutional adoption may be deterred by Bitcoin’s consumption of real resources. However, Pandl asserted that this would not impede the crypto asset’s demand.
Another optimistic commenter is Bloomberg editor Eddie van der Walt. According to him, certain events in 2021 helped validate cryptocurrencies as part of the US financial system. These include Coinbase’s IPO, PayPal’s launch of crypto services, and the approval of the first-ever Bitcoin ETF. He noted.
A year or two ago, people were arguing that cryptocurrencies would go zero and that they had no value; I don’t think anyone says that anymore.
According to Bitcoin Obituaries data by Bitcoin education portal 99Bitcoins, BTC was declared “dead” 124 times in 2017, about 15 times in 2020, and 45 times in 2021. And even then, the digital asset has surged 4,700 percent since 2016.
BTC achievements
Institutional investors are also increasingly taking up cryptocurrencies, with a huge preference for Bitcoin, the editor adds. Businesses like Visa, PayPal, and traditional banks now provide crypto-related services, developing a “fascinating future for cryptocurrencies.”
In closing, Van der Walt says Bitcoin has been time-tested having gone “through intricacies in its early years.” The digital asset has emerged stronger on the other end – something that has increased individual and institution confidence in holding it in their portfolios.
In addition to achieving a near $70K all-time high (ATH) since inception, BTC is also the fastest asset in the market to reach a $1 trillion valuation. On Monday, BTC celebrated its 13th anniversary along with a new hash rate ATH.
And even though the asset dictates the general direction of the crypto market, altcoins are beginning to make major achievements in DeFi, NFTs, and the Metaverse – for the greater benefit of the whole crypto industry.
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