Bitcoin price tipped to smash $100k as crypto outstrips gold – new Goldman Sachs forecast

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The cryptocurrency known for its wild fluctuations could reach the landmark figure should it surpass gold as a store of value. In a trading note sent to clients earlier this week, foreign exchange analysts at Goldman’s said bitcoin could hit the milestone in the next five years as investors turn from gold to crypto as a “store of value.”

Analysts pointed out that worldwide the public owns approximately $2.6trillion of gold for investment purposes while Bitcoin, which has a market capitalisation of $700billion, makes up 20 percent of the store of value market.

Speaking of the event, one analyst from the banking firm wrote: “We think that bitcoin’s market share will most likely rise over time as a by-product of broader adoption of digital assets.”

The Goldman Sachs note continued: “If bitcoin’s share of the ‘store of value’ market were to rise to 50 percent over the next five years (with no growth in overall demand for stores of value) its price would increase to just over $100k, for a compound annualized return of 17-18 percent (accounting for growth in Bitcoin supply over time).”

Analysts at Goldman Sachs said that scaling solutions, which allow the bitcoin network to process large volumes of transactions at speed, could allow the world’s most famous cryptocurrency to win market share from gold.

The group added: “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 capitalisation to gold can help put parameters on plausible outcomes for bitcoin returns.”

The world’s oldest cryptocurrency hit a new all-time high above $69,000 in November 2021.

However, some say that the $100,000 threshold is a little conservative in value.
Some cryptocurrency experts are far more bullish when it comes to the rise and rise of bitcoin.

Kate Waltman, a New York-based accountant told Time magazine: “The most knowledgeable educators in the space are predicting $100,000 bitcoin in Q1 2022 or sooner.”

Others are hesitant to predict a number and a date, but rather point to the trend of increasing value over time.

Investors should expect a “pretty sustainable” rise in bitcoin’s long-term value driven by organic market movement, with the $100,000 threshold in near sight.

Kiana Danial, founder of Invest Diva, and author of “Cryptocurrency Investing for Dummies” said: “What I expect from bitcoin is volatility in the short-term and growth in the long-term.”

Other large financial institutions have made their own predictions, as well, with JPMorgan predicting a long-term high of $146,000 and Bloomberg predicting it could hit $400,000 by 2022.

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There are only 18 to 19 million bitcoins currently in circulation, and minting will stop at 21 million.

Industry experts consistently point to this built-in scarcity as a big part of cryptocurrency’s appeal.

Other experts point out bitcoin has value because people give it value.
Nelson Merchan, Johnson’s Light Node Media co-founder says: “That’s really why everybody’s buying, because of the psychological aspect.”

Much speculation has recently emerged over the founder and creator of bitcoin.

In a recent interview, Elon Musk yet again denied being Satoshi Nakamoto but claimed that he knows the true identity of the elusive bitcoin founder.

The identity of the real inventor of bitcoin remains a mystery almost a decade and a half after the whitepaper on the largest and most well-known cryptocurrency was published.

Online rumours have persistently claimed that Mr Musk is the pseudonymous Satoshi Nakamoto, the creator of bitcoin, but the Tesla CEO has always denied those assertions.

According to the Tesla and SpaceX billionaire, computer scientist and cryptographer Nick Szabo is very likely the man who created bitcoin as he wrote about many of the ideas related to cryptocurrencies much before the technology was born.

Mr Musk is not the first to speculate about Szabo being the elusive bitcoin founder.

There have been reams of newsprint and online articles devoted to establishing the Hungarian programmer as the creator of bitcoin, including an article in the New York Times in 2017, which pointed at him being Satoshi Nakamoto.

However, while many have speculated that Szabo could be the real Satoshi, the man himself has repeatedly denied those rumours.

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