Regardless of its 60% gains in 2021, Bitcoin still fell short of many predictions as it failed to break above $100k. However, global investment banking giant Goldman Sachs has released its price prediction for Bitcoin in 2022, stating the possibility of $100k.
How Bitcoin Could Hit 100k in 2022
Goldman has estimated that the public holds about $2.6 trillion of gold for investment purposes. Bitcoin is at approximately 20% of gold’s market cap ($700 billion).
Zach Pandl, Goldman Sachs’ co-head of foreign exchange strategy, explained that the value of Bitcoin could grow over $100k if its adoption increases the “store of value” for investors against gold.
Gold vs. Bitcoin as a store of value is a debate yet to be concluded. However, while millennials and Gen Z’s see Bitcoin as the better investment, most boomers would pick gold over Bitcoin without thinking twice.
In his 2022 prediction, the enigmatic El Salvadoran President, Nayib Bukele, also forecasted that Bitcoin could reach $100k in 2022. MicroStrategy CEO Michael Saylor, however, sees the Bitcoin price surging to $600,000.
On The Flipside
- Although Bitcoin has been referred to as digital gold, it has often been criticized for its volatility and for not imitating the performance of more traditional assets.
Why You Should Care
Despite Bitcoin’s criticisms, especially its power consumption, Goldman Sachs explained that its institutional adoption would only keep growing.