Bitcoin Can Reach $100000: Goldman Sachs
Goldman Sachs Group Inc. sees the value of Bitcoin rising to $100,000 in four years. The reason: growing adoption of the digital coin. Goldman analysts forecast that Bitcoin’s use will increase as a store of value due to increasing per capita income levels in developing economies such as Vietnam and India.“
As economic growth creates new opportunities, we think that Bitcoin and cryptocurrencies more generally have the potential to become systemic assets,” says Goldman in its latest report.
Bitcoin, the dominant crypto currency, has a float adjusted market capitalization of $700 billion, representing a 20 percent share of all crypto. Given that in his view gold accounts for 10 times Bitcoin’s value and he estimates remaining gold investable at $2.6T, then he reckons total crypto including other coins is $2.4T.
If bitcoin’s share of the crypto market rises to 50% within five years, its price could jump to USD $100,000, according to Citigroup. The bank’s vice president of global FX and emerging markets strategy shared this bullish prediction in a note earlier this week. That would represent a compound annualized return of 18% over that period, not too shabby for an asset like this.
Bitcoin is a viable investment asset and if it continues to appreciate in value, it will become an undeniable part of the institutional portfolio, according to Morgan Stanley’s analysts led by James Faucette. Bitcoin’s “hardware constraints” such as energy consumption, will soon be a thing of the past, they said.
The Bitcoin network’s large and growing electricity consumption is a concern for many. In this note, we combine an accounting of the total electricity consumption at a small representative sample of Bitcoin mining farms around the world with estimates of how much electricity will likely be consumed by mining as bitcoin’s price increases toward its (relative) maximum over the next decade.
Physical precious metals are a centuries old safe haven asset. The argument was that there was intrinsic value in scarcity and difficulty to mine, they also held some sociological value as something “indestructible” in the case of war and their perceived ability to hold anonymous values. We posit that BTC meets these criteria while offering a very high Sharpe ratio and risk-adjusted return in the shortest duration possible, an area where PMs have not been able to provide. Moreover, BTC is infinitely divisible, fungible, transportable and verifiable. They do neither offer the same level of transparency nor liquidity that BTC does.