Goldman Sachs Inc. is a multinational investment banking, securities, and investment management corporation that offers a wide range of financial services to a large and diverse customer base that includes financial institutions, non-profit organizations, and people.
It is very obvious how knowledgeable this firm is in its analysis given the current state of experience in dealing with financial assets and services.
Goldman Sachs warned its customers on January 4 2022 in a report that the most cryptocurrency asset Bitcoin is gaining traction and might eat into gold’s market share.
According to current information, Bitcoin currently accounts for roughly 20% of the market that uses bitcoin as a store of value. And Bitcoin has a larger market share in the store of value market than Gold.
Goldman Sachs has a forecast for Bitcoin’s price. According to this company, no one can prevent Bitcoin from reaching $100,000 if it maintains its leading position in the best store of value market by 50%.
Aside from that, the investment banking behemoth suggested that Bitcoin’s new use case might act as another driver for the cryptocurrency.
Bank acknowledged that Bitcoin may be used for more than just a “store of wealth,” and that digital asset markets are significantly larger than Bitcoin’s, but it also believes that comparing Bitcoin’s market capitalization to gold can assist in defining reasonable Bitcoin returns.
These declarations by financial services behemoths demonstrated that Bitcoin is not going away and that there is a chance that it will eventually replace the payment system if better, more efficient use cases emerge, such as Bitcoin lightning-based projects with no limitations, similar to Layer1 features.
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