Bitcoin has surged this week rising from around $6,100 to highs of almost $7,500 with investors hoping this is the start of a cryptocurrency bull run. One particular cryptocurrency expert believes that bitcoin could take a chunk of the gold market cap.
Although the markets have dipped slightly this week bitcoin has maintained its price which could be a strong indicator that new money may well be entering the markets. According the Gabor Gurbacs, director of digital asset strategies at VanEck, the maturing bitcoin market may well lure investors from actual gold into “digital gold”.
Bitcoin Could Take A Chunk Of The Gold Market Cap
Gurbacs stated in an interview with CNBC that he believes bitcoin could take a chunk of the gold market cap. Stating “Gold today has around $7 trillion outstanding. If you take, say, 5 to 10 percent — I’ll let everyone do the math — bitcoin has upside”.
Fortunately we do have a bitcoin price calculator, so we can see that if Bitcoin were to take 10 percent of Gold’s market cap ($700 billion) the price would be around $46,000 assuming a supply of around 18 million bitcoin. Should Gurbacs theory come true the price of bitcoin would increase approximately 500%, further demonstrating just how much potential bitcoin has as an investment.
Before this were to happen we would need some major developments within the crypto industry, not to mention an influx of new money would have to enter the markets.
VanEck are currently working in addressing the issue of varying bitcoin prices from platform to platform by issuing an independent pricing benchmarks. Gurbacs is bullish on bitcoin and believes that the markets will continue to mature in the near future.
“We believe that there is sufficient liquidity. We believe there is pricing benchmarks. We believe there is a way to integrate bitcoin into the financial ecosystem that we are used to for ETFs, stocks, bonds and commodities,” he explained.