These cryptocurrencies could become less volatile 0:49
New York (CNN Business) -
Bitcoin prices have reversed lately, but Goldman Sachs still sees strong gains in the coming years.
The world's most valuable cryptocurrency has fallen to roughly $ 46,000 after rising to a record close to $ 69,000 in November.
However, Goldman Sachs said in a report this week that bitcoin could be worth more than double, to just over $ 100,000 per coin, in the next five years.
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"We believe that bitcoin's market share is likely to increase over time as a by-product of the wider adoption of digital assets," said Zach Pandl, co-head of global emerging markets currency, rates and strategy at Goldman Sachs, in the report.
Pandl argues that bitcoin will steal more and more market share from gold, which has stalled at roughly $ 1,800 an ounce.
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He said that bitcoin currently represents about 20% of the market called a "store of value," a term used to describe gold, bitcoin, and other alternative assets such as currencies and commodities whose prices, in theory, shouldn't depreciate much over a long period of time. of time.
Pandl believes that eventually, bitcoin could account for 50% of the store of value market, which could boost the cryptocurrency 17% to 18% more annually for the next five years to exceed $ 100,000.
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"We believe that comparing its market capitalization to gold can help establish parameters on plausible outcomes for bitcoin returns," Pandl added.
Of course, bitcoin and other major cryptocurrencies like ethereum, binance, solana, and meme tokens like dogecoin and shiba inu have been extremely volatile in the past year.
Cryptocurrencies are behaving more like stocks than coins right now.
Still, a growing number of top fund managers, including Stanley Druckenmiller, Paul Tudor Jones, and George Soros, have invested in bitcoin.
Regulators have approved exchange-traded funds that also track bitcoin futures prices, making it even easier for individual investors to dive into the market.
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