Goldman Sachs reveals how Bitcoin can hit $ 100k in 2022

Goldman Sachs, through its recently released note to clients, has stated that Bitcoin could hit $ 100k this year.

$ 100k Bitcoin Will Happen If Investors See It As Digital Gold

According to the global investment bank, your prediction largely depends on how investors treat Bitcoin this year. This means that if investors were to accept the notion that the flagship cryptocurrency is digital gold, the asset’s value could skyrocket.

Goldman Sachs went on to say that BTC’s float-adjusted market capitalization is around $ 700 billion. This is about 20% of the “store of value” market that is dominated by currency and gold.

With the “store of value” market worth over $ 2 trillion, Goldman Sachs co-head of global currency strategy Zach Pandl is of the opinion that Bitcoin could hit $ 100k if its share of the “store of value “market would rise to 50%.

In his words:

“We believe that comparing its market capitalization to gold can help establish parameters on plausible outcomes for bitcoin returns.”

The research note also admitted that the digital asset industry was not just about Bitcoin, while highlighting the fact that BTC “may have applications beyond simply a ‘store of value.'”

Goldman Sachs highlights Bitcoin’s energy use

Speaking about the energy consumption of Bitcoin, the Goldman Sachs analyst noted that the current energy consumption of the network could hamper its adoption by institutional investors.

A previous CryptoSlate report has shown that energy concerns about the currency have not deterred institutional investors who invested more than $ 6 billion in the asset last year.

However, it is important to note that bitcoin mining it has become a major issue among countries seeking to reduce their carbon emissions.

In Kazakhstan, for example, protesters are beginning to pressure the government over rising electricity bills that have forced telecom service providers to shut down internet services and isolate miners within the country.

Can Bitcoin Outperform Stocks?

Bloomberg strategist Mike McGlone believes that Bitcoin could outperform stocks this year, even though the digital asset has started the year on a downward trend.

According to the Bloomberg analyst, the Federal Reserve’s decision to raise the interest rate this year could lead to a “win-win scenario for Bitcoin. [versus] the stock market.”

According to his statement:

“Cryptocurrencies are among the most risky and speculative. If risk assets decline, it helps the Fed fight inflation. By becoming a global reserve asset, Bitcoin can be a primary beneficiary in that scenario. “

Posted in: Bitcoin, Analysis

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Source: https://cryptoslate.com/goldman-sachs-reveal-how-bitcoin-can-reach-100k-in-2022/

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