Bitcoin is likely to take a larger market share than gold as a “store of value” thanks to broader adoption of digital assets and Bitcoin scaling solutions, according to a Tuesday report from Goldman Sachs.
Cryptocurrency price could exceed $100,000 in a hypothetical scenario when Bitcoin is BTCUSD,
Capture 50% of the “store of value” market over the next five years, assuming no growth in total demand for value stores, Zach Bundle, co-head of global FX strategy, Emerging Markets rates, wrote in the notes.
Store of value refers to assets that maintain their value without decreasing in value. Bitcoin proponents have long called the cryptocurrency “digital gold.”
Bitcoin currently commands about 20% of the “store of value” market, with a float-adjusted market capitalization of just under $700 billion, compared to the $2.6 trillion worth of gold held by the public for investment purposes, according to Bundel.
Bitcoin is recently trading at around $46,390, down 1% in the past 24 hours and down more than 30% from its November high of $68,990.
The report says that the high energy consumption of bitcoin mining could “remain an important obstacle” to institutional adoption of the cryptocurrency.
Read more: Why, according to a strategist, Bitcoin is worth $120,000