Bitcoin could take market share away from gold, Goldman Sachs analysts have claimed.

The research note to clients estimated that Bitcoin’s overall market capitalisation as being close to $700 billion at today’s prices.

Zach Pandl, Goldman Sachs’ co-head of foreign exchange strategy, wrote that bitcoin holds 20 per cent of the “store of value” space, which the cryptocurrency shares with gold, which is traditionally used as a haven by investors.

Pandl defines the “store of value” space as the total value of bitcoin and gold used for investment combined.

The note also states that “if bitcoin’s share of the ‘store of value’ market were to rise to 50 per cent over the next five years (with no growth in overall demand for stores of value) its price would increase to just over $100,000”.

The news comes as bitcoin, currently the world’s most popular digital asset, trades at around £31,747.

Not all commentators hold similar views on the cryptocurrency. In December, Sir John Cunliffe, the Bank of England’s deputy governor for financial stability said the value of bitcoin could “practically drop to zero”, during an interview with the BBC’s Today program.

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