Bitcoin Can Reach $100K in ‘Hypothetical’ Store of Value Boost, Goldman Sachs Says

The firm assumes a scenario where bitcoin adoption increases as a store of value for investors versus gold.

By Michael Bellusci

Jan 5, 2022 at 2:51 a.m. UTC

Updated Jan 5, 2022 at 10:25 p.m. UTC

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Michael Bellusci

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.

Follow @mikeybellusci on Twitter

Alex Thorn

Head of Firmwide Research

Galaxy

Hear Alex Thorn share his take on "Bitcoin and Inflation: It’s Complicated” at Consensus 2023.

Secure Your Seat

Alex Thorn

Head of Firmwide Research

Galaxy

Hear Alex Thorn share his take on "Bitcoin and Inflation: It’s Complicated” at Consensus 2023.

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Bitcoin can snag market share from gold over time as a “byproduct” of more adoption along with the potential from “Bitcoin-specific scaling solutions,” Goldman Sachs’ co-head of foreign exchange strategy Zach Pandl said in a research note to clients Tuesday.

“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.

Goldman estimates that the public holds about $2.6 trillion of gold for investment purposes, assuming a gold price of $1,800 per troy ounce. Bitcoin’s float-adjusted market capitalization is just under $700 billion, Pandl wrote, adding that this implies bitcoin now commands about 20% share of the “store of value” (gold and bitcoin) market.

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Michael Bellusci

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.

Follow @mikeybellusci on Twitter

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Michael Bellusci

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.

Follow @mikeybellusci on Twitter