Bitcoin rallies again, hitting a new all-time high of $24,661 on Friday. Investors announced on social media on December 25th “Happy Bitmas” (from the traditional Merry Christmas greeting).
Known as the leading cryptocurrency in the market, bitcoin has had an unexpected success during the pandemic, quickly becoming a competitor to gold in some portfolios. This week alone, the cryptocurrency has gained 3.15%.
Bitcoin’s current market capitalization is about $350 billion, while gold has about $10 trillion.
Blockchain.com has recorded a 40.46% growth in wallet creation on its crypto exchange since the beginning of the year. This is about 18 million new wallets created on the site since December 2019. However, Bitcoin investors, known for their unquenchable optimism, think this is just the beginning, Business Insider reports.
According to Garrick Hillman, head of research at Blockchain.com, Bitcoin’s market capitalization could reach $1 trillion in 2021 if investors take its status as a reserve currency more seriously.
Even Goldman Sachs takes cryptocurrency seriously, noting that it poses a growing threat to gold.
“Gold’s recent lag behind real rates and the dollar has made some investors worried that bitcoin is replacing gold as the preferred inflation hedge,” the company recently said. “While there is some substitution going on, we do not view the growing popularity of bitcoin as an existential threat to gold’s status as the currency of last resort.”
Recall that Goldman Sachs Group is one of the world’s largest investment banks, a financial conglomerate, known as The Firm among financiers, engaged in investment banking, securities trading, investment management, and other financial services.