Bitcoin price vs gold price: Hypothetical scenario puts cryptocurrency at $100,000

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Cryptocurrency Bitcoin will take market share away from gold in 2022.

Cryptocurrency Bitcoin will take market share away from gold in 2022 as digital assets become more widely adopted, Goldman Sachs analyst Zach Pandl said in a research note to clients. Citing bitcoin market capitalisation of $700 billion, compared to the around $2.6 trillion worth of gold owned as an investment, Goldman Sachs said that the cryptocurrency currently has a 20% share of the “store of value” market.

Bitcoin will “most likely” become a bigger proportion over time, Goldman Sachs said, in a list of 2022 predictions.

In a hypothetical scenario in which bitcoin grabs a 50% share of this market, its price would reach just over $100,000, the note said.

Bitcoin price today was trading around $46,073, having struggled to make gains after falling sharply in early December. In November, it had hit an all-time high of $69,000.

“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,” Pandl wrote.

The term “store of value” usually describes assets which can maintain their worth over time without depreciating, such as precious metals or some currencies.

Goldman Sachs restarted its cryptocurrency trading desk in 2021.

Gold price jumps 154, silver rallies 352

New Delhi, Jan 5 (PTI) Gold in the national capital on Wednesday jumped 154 to 46,969 per 10 grams amid a rally in international precious metal prices, according to HDFC Securities.

In the previous trade, the precious metal settled at 46,815 per 10 grams.

Silver also rallied 352 to 60,725 per kg, from 60,373 per kg in the previous trade.

In the international market, gold was trading with gains at USD 1,816 per ounce and silver was flat at USD 22.92 per ounce.

HDFC Securities Senior Analyst (Commodities) Tapan Patel said, “Gold prices traded firm, with spot gold prices at COMEX trading up at USD 1,816 per ounce on Wednesday.”

Navneet Damani, vice-president (commodities research) of Motilal Oswal Financial Services, said, “Gold prices inched higher as surge in COVID-19 cases of the Omicron variant that could threaten global economic recovery increased the panic in market boosting appeal for demand for the safe-haven metal.”