Bernstein analyst, Gautam Chhugani has made a bold prediction that could change the global financial scene.
He believes that Bitcoin, having broken through the $100,000 price barrier yesterday and climbing as high as $104,088 on all crypto exchanges is poised to surpass gold as the world’s most reliable store of value within the next decade.
With the total cryptocurrency market capitalisation rising by 62.5% from $2.4 trillion to $3.9 trillion following Trump’s victory in last month’s election, Bitcoin as a single crypto entity has already transcended silver’s $1.8 trillion but still has vacuums to cover before it matches gold’s astounding valuation of $17.9 trillion.
In his note, Chhugani said: “We expect Bitcoin to emerge as the new-age premier ‘store of value’ asset eventually replacing Gold over the next decade, and becoming a permanent part of institutional multi-asset allocation and a standard for corporate treasury management.”
This forecast coordinates with the conviction of proponents like Coinbase’s CEO, Brian Armstron, Mike Novogratz and Charles Edwards who also predicted that Bitcoin might double in value in the next few weeks due to its very small market capitalisation.
While some of these radical crypto enthusiasts believe in the adoption of Bitcoin as a conventional asset design for world transactions and safe-keeping, traditionalists warn of risk and volatility and malicious interferences from AI.
They advise to continue to use Gold because of its enduring stability overtime.
However, the distinctions between the old and the new—for example, between Bitcoin and gold—are becoming more hazy as the contemporary financial landscape develops.