Goldman Sachs says Bitcoin will rival gold as store of value: Crypto Moves

RIYADH: Bitcoin, the world’s leading cryptocurrency, was trading down on Thursday, dropping 8.42 percent to $42,874 at 1:58 pm Riyadh time.

Ether, the second most traded cryptocurrency, was priced at $3,353, down 12.36 percent, according to data from Coindesk.

Other news:

Bitcoin will take market share from gold in 2022 as digital assets become more widespread, Goldman Sachs analyst Zak Bundle said in a research note to clients.

Citing a market capitalization of $700 billion in Bitcoin, compared to about $2.6 trillion in gold held as an investment, Goldman Sachs said the cryptocurrency currently holds 20 percent of the market capitalization store.

Goldman Sachs said that Bitcoin is likely to become an even larger percentage over time on its 2022 forecast list.

In a hypothetical scenario in which Bitcoin captures a 50 percent share of that market, its price will reach just over $100,000, the note states.

“Bitcoin may have applications beyond just a ‘store of value’ and the digital asset market is much larger than Bitcoin, but we believe that comparing its market capitalization to gold can help set the bar for reasonable Bitcoin returns,” Pandl wrote.

The term “store of value” usually describes assets that can maintain their value over time without decreasing in value, such as precious metals or certain currencies.

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El Salvador’s Finance Minister Alejandro Zelaya said on Tuesday that his government will send about 20 bills to Congress on the country’s bitcoin bonds.

He explained that the bills would cover financial markets and securities investment to provide a legal basis for the issuance of bitcoin bonds, adding that the legislation would create a framework to cover corresponding market regulation and issuance of securities in crypto assets.

“This is to provide legal structure and legal certainty for everyone who buys bitcoin bonds,” Zelaya said.

The Salvadoran government has made it clear that half of the funds raised from Bitcoin bonds will be used to build infrastructure and the rest will be used to purchase Bitcoin.

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Nasdaq-listed Moneygram International announced Wednesday that the company has completed a strategic minority investment in Coinme, a leading crypto cash trading platform in the United States.

This project gives Moneygram an approximate 4 percent ownership stake in Coinme, Bitcoin.com reports.

“At Moneygram, we remain optimistic about the huge opportunities that exist in the ever-growing world of digital currencies and our ability to act as a compatible bridge to link digital assets to local currency,” Alex Holmes, Chairman and CEO of Moneygram said.

The investment by Moneygram will support Coinme’s international expansion plans and other growth initiatives.

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