(Bloomberg)–There has been rough talk on whether bitcoin could replace gold. Experts and gold traders have stayed at the upper hand, saying that their product cannot lose its value since it has served for many years. For sure, it’s true, and gold is a physical asset that makes it more unique, a report by bloomberg.
There is no correct prediction, and nobody knows what might happen in the future. However, several people prefer to change their currency to bitcoin while traveling to another country to act as a store of value. They prefer cryptocurrency because of its digital assets rather than physical gold.
As time goes by, bitcoin continues to pressure gold as the market becomes more competitive. Nevertheless, people are moving towards digital assets despite the high fluctuation rate. Expert predicts that bitcoin’s price will cross the $100,000 mark because of the limited number of coins before 2027. Goldman Sachs Group’s advocates released the report early yesterday.
Their spokesman said that the bitcoin’s market cap is currently below $700 billion, but it will rise in a few months. Last year in February, they attained a trillion-dollar mark because the market stock was very high. That market cap represents almost 20% of the total store of value globally. As we know, only two products can be used as a store of value, i.e., gold or bitcoin. According to Goldman Sachs statistics, gold investments are approximately $2.6 trillion.
If the bitcoin’s “store of value” rises in the next five years by 50%, the price will remain above $100,000 per single coin. This will result in annual revenue of 18%. The report was released by co-head of EM strategy and global Fix, Zach Pandl.
We are still in the first quarter, and the bitcoin price is around $46000, which is very low compared to November’s rate of $69000. However, bitcoin investors have high hopes that the market will rise before the third quarter of 2022. Since the worst fluctuation in 2017, the bitcoin price has increased by almost 4700%.
The only disadvantage of bitcoin is its limitation to performing many tasks. Gold is used in almost every industry to make different products. The higher institutions buying shares want to make changes so that the coin can be employed in other industries. The likes of NFTs have to loom in to support the bitcoin market. Despite that, there is no way the demand for bitcoin will slow down.
People have always referred to bitcoin as digital gold. Some forms of business being carried out by gold investors seems to work with crypto. Yet there is no place where it pays dividends or interests. To add to that, it does not copy any traditional performance, hence making it hard to predict the future. Nevertheless, advocates have accepted that the coin can protect citizens against fiat currency abuse.