Bitcoin has all the makings of being a disruptive, digital currency that could one day replace gold as the world’s most popular store of value.
The global investment banking giant, Goldman Sachs (NYSE:GS), released its price forecast for Bitcoin in 2022, stating the possibility of $100k. Despite its 60% gains in 2021, Bitcoin did not meet many expectations as it failed to break above $100k.
Goldman Sachs predicted that Bitcoin could reach $100k in 2022 if it continues to overtake gold’s market share.
Approximately 2 percent of gold’s market cap ($700 billion) is held by the public. Goldman estimates that the public holds about $2.6 trillion in gold as an investment.
Zack Pandl, Goldman Sachs’ co-head of foreign exchange strategy, said Bitcoin’s value could soar beyond $100k if its adoption significantly increase the value of gold as a “store of value.”
Gold versus Bitcoin as a store of value is a debate that has yet to be settled. However, most boomers would pick gold over bitcoin without second thoughts, despite millennials and Gen Z’s preference for bitcoin.
Nayib Bukele, the enigmatic president of El Salvador, predicted Bitcoin could reach $100,000 by 2022. MicroStrategy CEO Michael Saylor, however, predicts bitcoin to surge to $600,000.
Goldman Sachs estimates Bitcoin’s institutional adoption will only grow despite Bitcoin’s criticisms, especially its power consumption.
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