Benzinga | Jan 5, 2022 08:49AM EST

Goldman Sachs Says Bitcoin Could Hit $100K By Capturing More Market Share From This Financial Asset

Goldman Sachs Group Inc's (NYSE:GS) co-head of foreign exchange strategy Zach Pandl estimates a $100,000 price target for Bitcoin (CRYPTO: BTC) if it manages to capture more market share from gold in the coming years.

What Happened: According to a research note seen by CoinDesk, Pandl thinks Bitcoin could take more market share from the precious metal as a byproduct of more adoption, driven by the potential from "Bitcoin-specific scaling solutions."

"Hypothetically, if Bitcoin's share of the 'store of value' market were to rise to 50% over the next five years (with no growth in overall demand for stores of value) its price would increase to just over $100,000, for a compound annualized return of 17-18% (accounting for growth in Bitcoin supply over time)," Pandl wrote in the note.

Pandl estimates that Bitcoin currently has a 20% share of the "store of value" market, which consists of gold and Bitcoin. The Goldman executive based his estimations on the public holding $2.6 trillion of gold for investment purposes and Bitcoin's float-adjusted market cap of just under $700 billion.

Why It Matters: Bitcoin as an alternative store of value to gold is a narrative that has been gained popularity.

Last month, billionaire hedge fund manager Ray Dalio said he had added a small amount of Bitcoin and Ethereum (CRYPTO: ETH) to his portfolio for diversification purposes.

"It's [Bitcoin] almost a younger generation's alternative to gold, and it has no intrinsic value, but it has imputed value, and it has, therefore, some merit," said Dalio.

Price Action: As of Wednesday morning, Bitcoin was trading at $46,385.80, down 0.82% in the last 24 hours.

Related Link: Is The $46K Level The Calm Before The Storm Before Bitcoin As It Eyes $100,000 In 2022? What Experts Are Saying

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