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Bitcoin Could Reach $100K And Overtake Gold's Market Share: Goldman Sachs

Bitcoin currently makes up a 20% share of the store of value market.

Despite bitcoin's ebbs and flows, the cryptocurrency could reach $100,000 — according to analysts at Goldman Sachs Group, it is steadily pushing out gold's place in the store of value market.

After nearly topping $70,000 in November, bitcoin has been declining steadily and fell by nearly 30% in the last month. But as cryptocurrency in general gains wider acceptance, many predict that bitcoin will continue to soar long-term — in the last five years, it surged by nearly 5,000%.

Goldman Sachs, Bloomberg reports, puts bitcoin's float-adjusted market capitalization at just below $700 billion or 20% of store of value market (assets that gain or stay stable over time). Gold is presently at $2.6 trillion.

The investment firm raised the possibility of, in the next five years, bitcoin making up as much as 50% of the entire store of value market. This would put its value at around $100,000 and an annualized return of between 17% and 18%.

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Gold, meanwhile, has dropped 3.6% in 2021 as part of the biggest annual decline since 2015 but has recently been on the rebound with a six-week high. While gold has long been viewed as a much safer investment compared to cryptocurrency, the coming years could start to forge a different path for the two assets.

"Gold and crypto, when you start to think about them, there's a lot of the same attributes," David Schassler, portfolio manager of the Inflation Allocation ETF, told TheStreet in a video interview in November. "There's a finite supply. [There are] only 21 million crypto coins can be made, so you've got this finite supply, just like you do with gold."