Bitcoin will be like gold: Goldman Sachs
Leading investment bank, Goldman Sachs, remains bullish regarding the future of Bitcoin. Despite a recent (and sharp) decline in value, the company expects it to become a “store of value” and function in a similar way to gold in the coming years.
The cryptocurrency has a very long way to go before it truly rivals gold in this regard – gold has a current market cap of around US$11.4 trillion while Bitcoin currently hovers around US$800 billion – however, as Co-head of Foreign Exchange Strategy, Zach Pandl, said in a research note: “Bitcoin may have applications beyond simply a ‘store of value’—and digital asset markets are much bigger than bitcoin—but we think that comparing its market capitalization to gold can help put parameters on plausible outcomes for Bitcoin returns.”
It’s also not the only crypto assets Goldman Sachs has interest in. Driven by the growth in NFTs, ethereum (which many popular NFTs sit on) has appreciated rapidly in value in the last couple of years, and Goldman Sachs predicts that it has a high chance of overtaking Bitcoin as a “dominant store of value.”