Daily Management Review

Goldman Sachs expects Bitcoin to rise to $100,000


Bitcoin could reach a value of $100,000, Goldman Sachs expects. It believes this is possible if the cryptocurrency can take market share away from gold.

The value of Bitcoin could rise to $100,000, Bloomberg wrote, citing Goldman Sachs analysts. According to the bank, the value of the most popular cryptocurrency could rise if Bitcoin can take market share away from gold, which is traditionally considered a "safe" asset in which investors invest during market turmoil.

Bitcoin's market capitalisation on a turnover-adjusted basis is now just under $700bn, Goldman Sachs estimates. That's about 20 percent of the total market share that Bitcoin and gold hold together: the value of gold in the market is estimated at $2.6 trillion, Bloomberg wrote.

The Goldman Sachs expert noted that Bitcoin will rise in value due to its increasing popularity among institutional investors. An obstacle to the process could be the high consumption of resources to run the bitcoin network, but the demand for the asset will not stop this circumstance, Bloomberg’s expert said. Bitcoin's disadvantages are similar to those of gold.

source: bloomberg.com