Goldman Sachs Says Bitcoin Will Compete With Gold As A Safe Value Over Time

Today, most investment banks still turn their backs on cryptocurrencies. However, one of the largest private players in the global economy, Goldman Sachs has an optimistic view for the future of Bitcoin.

As collected Bloomberg, the New York-based investment group predicts that Bitcoin subtract participation from gold as a store of value for the next five years and that achieves an annualized profitability of between 17% and 18%.

Bitcoin establishing itself as a store of value, despite its volatility

The Goldman Sachs report signed by analyst Zach Pandl estimates that the current market capitalization of gold is $ 2.6 trillion. Bitcoin, meanwhile, reaches $ 700 billion.

According to the investment bank, compared to gold, Bitcoin has the 20% of the current “store of value” marketBut the growing acceptance and adoption of digital assets could see that small percentage grow rapidly.

Bitcoin, which is currently the most popular cryptocurrency in the world, could reach 50% of the value reserve market in the next five years. Goldman Sachs says that in the hypothetical case that happens, the price of the cryptocurrency would skyrocket above $ 100,000, reaching an annualized return of between 17% and 18%.

As of this writing, the Bitcoin is trading slightly above $ 46,600, something below the barrier of $ 50,000 that is usually news every time it is exceeded.

The value of Bitcoin has been growing over the years. In October 2020 the cryptocurrency reached $ 66,000 and somewhat later, in November, 69,000. However, predicting its growth is a difficult task.

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