Bitcoin May Hit $100,000 Mark, Take On Gold: Goldman Sachs

Bitcoin may reach $100,000 and overtake gold amid wider adoption of digital assets, Goldman Sachs Group said.

According to Goldman's estimates, bitcoin’s float-adjusted market capitalization is just under $700 billion, accounting for a 20% share of the “store of value” market, which it said comprises bitcoin and gold. The value of gold available for investment is estimated at $2.6 trillion.

If bitcoin’s share of the store of value market rises to 50% over the next five years, hypothetically, its price would increase to just over $100,000, for a compound annualized return of 17% or 18%, Zach Pandl, co-head of global FX and EM strategy, wrote in a note Tuesday, according to a Bloomberg report.

In October, Raoul Pal, a former hedge fund manager at Goldman Sachs, predicted that bitcoin will touch the $1 million mark by 2025.

However, it is not close to the record high. The coin was trading around $46,000 Wednesday morning. Its downward slope came after it hit a record high in November. But it has surged over 4,700% since 2016.

Bitcoin is often referred to as digital gold. Like gold, it pays no interest or dividends, and it doesn’t imitate the performance of more traditional assets.