Bitcoin could become more valuable than gold; Goldman Sachs says this crypto may hit $100,000 mark

World’s largest cryptocurrency bitcoin will take away additional market share from gold this year, according to Goldman Sachs, pronouncing its support for the digital asset in the debate over the relevance of bitcoin over gold. Bitcoin price is also expected to clock the much quoted $100,000 mark if it’s share of the “store of value” market were to rise to 50%, Goldman Sachs analyst Zach Pandl said in a note this week. Gold has historically been considered a safe haven asset while bitcoin is seen as highly volatile.

“Hypothetically, if Bitcoin’s share of the “store of value” market were to rise to 50% over the next five years (with no growth in overall demand for stores of value) its price would increase to just over $100,000, for a compound annualized return of 17-18% (accounting for growth in Bitcoin supply over time),” according to the Goldman note.

Goldman said bitcoin’s float-adjusted market capitalisation is currently just under $700 billion, and it currently commands roughly 20% share of the “store of value” market.  ‘Store of value’ is a term used for an asset that maintains its value, rather than depreciating. Gold has long been referred to as a good store of value.