El gigante bancario Goldman Sachs ve that Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. will rise as the gold market an area or arena, online or offline, in which commercial dealings are conducted. shrinks.
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The bank Goldman Sachs joins the “club” of those predicting that the price of Bitcoin could reach USD $100,000, according to a report by Bloomberg.
The U.S. banking giant estimates that the largest cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. currently accounts for one-fifth of the global store-of-value market. Therefore, the price of Bitcoin could reach six figures if gold’s market share continues to shrink.
The bank’s explanation
Goldman estimates that the float-adjusted market capitalization of Bitcoin is just under USD $700 billion. That represents 20% market share of the “store of value” market which, he said, is made up of Bitcoin and gold. The value of gold that is available for investment is estimated at USD $2.6 trillion.
If the participation of Bitcoin in the reserve value market would “hypothetically” rise to 50% over the next five years, its price would rise to just over $100,000, for a compound annualized return of 17% or 18%, wrote Zach Pandl, co-head of global foreign exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. and emerging markets strategy.
Last year, in addition to talking about Bitcoin, Goldman Sachs did it on Ethereum. In a report in May last year he said that Ethereum a decentralized open-source blockchain with smart contracts functionality. could eclipse Bitcoin as a store of value . Another thing that he also stated in 2021 was that 60% of the family offices of the very wealthy want or have exposure to cryptocurrencies.
More than they say will increase
He is not the only optimist.
El Salvador’s President Nayib Bukele said on January 1 that he believes that Bitcoin will reach USD $100 thousand this year .
Meanwhile, Tom Lee of Fundstrat predicted in late December that the cryptocurrency could soar to USD $200,000.
The evangelist of Bitcoin Max Keizer sees the price reaching USD $220,000 this year due to the rapid growth of the network a network refers to all nodes in the operation of a blockchain at any given moment in time. hash a hash is the output result of a hashing algorithm, which creates a unique, fixed-length string to encrypt and secure a certain selection of arbitrary data. rate.
While legendary investor Ray Dalio, however, sees limited upside for Bitcoin. In a recent interview with Lex Fridman, he doubts which is unlikely to reach $1 million. . He predicted that the price of the largest cryptocurrency is unlikely to exceed 20 percent of the gold market capitalization that excludes jewelry and central bank holdings.
However, the CEO of MicroStrategy Michael Saylor says that the price of Bitcoin will increase to $600,000.
While Bitcoin had a price increase of about 60% last year, its performance paled in comparison to most of the altcoins and even with some major companies.
According to UToday, Joe Weisenthal, co-host of the podcast Odd Lots, recently pointed out that the actions of Apple actually managed to overcome Bitcoin in 2021 despite facing significantly lower volatility.
In addition, risk-adjusted returns of Bitcoin are much lower compared to real estate and the benchmark benchmarking is a method of comparing the performance of your asset or investment portfolio to that of similar assets to see whether there is a gap that can be bridged by increasing performance indicators. S&P 500 index.
Meanwhile, gold recently recorded its worst year since 2015 amid a global economic recovery that has sharply reduced demand for the safe-haven asset.
The U.S. Federal Reserve is expected to announce two interest rate hikes this year, which many analysts say will not bode well for risk asset prices such as Bitcoin The US economy, as it has benefited greatly from the unprecedented money printing.
Sources: Bloomberg , UToday , archivo
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