Bitcoin (BTC) has not managed to close in 2021 above the long-awaited $ 100,000 level, but experts believe that the psychological horizon is still achievable if it takes a share of the gold market, albeit for a longer period.
In a note issued to investors on Tuesday, Goldman Sachs co-head of global currency and EM strategy Zach Pundle suggested that if the largest cryptocurrency exceeded 50% of market share could maintain value over the next five years, the price of BTC would rise as much as just over $ 100,000. Which means a compound annual return of 18%.
While the current market value of BTC is close to $ 884 billion, Goldman Sachs estimates that the adjusted floating market value of Bitcoin is less than $ 700 billion, which is one-fifth of the “save” market. However, the market is not crowded. The only other member of Goldman’s securities store is gold, with investments totaling $ 2.6 trillion.
Despite the ups and downs, Bitcoin is still able to occupy the first place in Goldman Sachs’ return chart by 2021 with an annual return of over 60%. Gold is at the bottom of the same chart with an annual loss of 4%.
Annual summary of results. Source: Goldman Sachs Global Investment Research.
Related: Wait-and-see approach: 3/4 of Bitcoin’s supply is now illiquid
Goldman Sachs believes that the demand for BTC will not be affected by the heated debate about the energy consumption of the Bitcoin network. While a recent study claims that the Bitcoin ecosystem uses eight times more energy than Google and Facebook combined, the New York Digital Investment Group estimates that Bitcoin mining will not account for more than 0.4% of global power consumption over the next decade. . …
As described in Cointelegraph’s New Years Edition, Bitcoin has had a bumpy ride over the past year. Many experts believe that $ 100,000 is a single target for the major cryptocurrency of 2021. However, BTC ended the year around $ 47,000 after reaching a record high of around $ 69,000 in November, which is less than analysts’ ambitious target.