Bitcoin will take market share away from gold in 2022 as digital assets become more widely adopted, Goldman Sachs analyst Zach Pandl said in a research note to clients.

Goldman Sachs claims that bitcoin has a 20% share of the "store of value" market, citing its $700 billion market capitalization versus the $2.6 trillion worth of gold held as an investment.

In a list of 2022 predictions, Goldman Sachs stated that Bitcoin will "most likely" become a larger proportion over time.

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The price of bitcoin would reach just over $100,000 in a hypothetical scenario in which it captures 50% of this market, according to the note.

Bitcoin was trading around $46,073 on Wednesday, after struggling to recover from a sharp drop in early December. It had reached an all-time high of $69,000 in November.

"Bitcoin may have applications beyond simply a "store of value" - and digital asset markets are much bigger than Bitcoin - but we think that comparing its market capitalization to gold can help put parameters on plausible outcomes for Bitcoin returns," Pandl wrote.

The term "store of value" typically refers to assets that can retain their value over time without depreciating, such as precious metals or certain currencies.

In 2021, Goldman Sachs reopened its cryptocurrency trading desk.