Goldman Sachs projects Bitcoin price at $100,000 and possibility of replacing gold
One of the largest banks in the world, Goldman Sachs estimates that Bitcoin may continue to take a part of the gold as a reserve of value asset and thus reach $100,000 a unit.
According to a Bloomberg report, the bank estimates that the market value of the BTC is at $700 billion and this already corresponds to 20% of the market for “value reserves” (assets in which people are confident that they will appreciate in the long term of time).
The total value of gold available for investment is $2.6 trillion.
Zach Pandl, head of the bank’s foreign exchange, said in an analysis that if Bitcoin, in five years, rises to 50% of its value-reserve assets, then its price should hit the historic and expected $100 thousand level.
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In July of last year, Goldman Sachs revealed the results of a survey that showed that more family offices are turning to cryptocurrencies as a possible hedge against inflation, currency devaluation and unpredictable macroeconomic events.
More than 150 family offices around the world were interviewed for the survey. Of those surveyed, 15% already have cryptocurrencies (among American respondents, this number is 25%), while 40% are concerned about currency devaluation.
In May 2021, the bank began its operation with bitcoin derivatives, confirming rumors that the institution would resume its BTC futures trading desk. The information came from CNBC, which had access to an internal company memo.
In the document, the bank informed its market personnel that a newly created cryptocurrency desk had successfully traded two types of derivatives linked to bitcoin in the NDF (Non Deliverable Forward) modality, which is a contract without the physical delivery of the currency, usually operated in the over-the-counter (OTC) market.
In April 2021, the bank’s CEO, David Solomon, floated over to cryptocurrency:
“As activities in these areas [cryptocurrency, blockchain and money digitization] progress, there will be a significant disruption and a shift in the way money becomes moves around the world,” he said.