Gold is Predicted to Hit $2,300 by the End of 2022, But What About Bitcoin?
The fact that the U.S. dollar depreciates as a reserve currency, and also witnessing investors trying various appealing alternatives on the market, could very well mean that both Bitcoin (BTC) and gold could see a price rise.
Giant investment banking company Goldman Sachs says the price of gold is expected to go up about 20 percent and reach $2,300 before the year of 2022 ends. The commodity hit new record highs on July 31st at over $2,000 per ounce, but the renowned company says it believes it still has a long way to go.
As per a report noted by Bloomberg, the bank says we should expect the price of gold to rise to $2,300 in the next 12 months – a reviewed prediction that initially foresaw $2,000 – because of concerns regarding the U.S. dollar’s state.
Experts at Goldman Sachs said on July 28th that ‘a record level of debt accumulation’ from the United States government and ‘real concerns around the longevity of the U.S. dollar as a reserve currency’ had impacted the price of the commodity.
Gold is priced at $1,975 per ounce at the moment.
If Gold’s Price Rises, So Will BTC’s?
According to Goldman Sachs, the actions taken by the U.S. government to somehow decrease the economic disaster that came with the businesses shutdowns across the world in the last few months – for instance, stimulus payments – could easily conduct to an increase in debt through currency debasement. The bank also said that such conditions would definitely lead to an increase in prices of gold and silver.
Still, many other alternatives to fiat currency would look more appealing to investors as the U.S. dollar gradually loses its value as a reserve currency. Moreover, Cointelegraph reported back on July 30th that BTC could be a better solution against inflation than gold.
Since March, Bitcoin has had a stronger negative association with the U.S. dollar than gold.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.