10x Research: If the market value of gold in the non-jewelry sector is taken as the target, Bitcoin still has the potential to grow 5 times

PANews reported on December 13 that 10x Research published an article on the X platform titled "The Optimal Allocation of Bitcoin in Multi-Asset Portfolios". The article stated that contrary to popular belief, the price of Bitcoin is driven by demand, not changes in its (mining) supply. Each of Bitcoin's five bull markets has been driven by innovations in how investors access Bitcoin - from the creation of early spot exchanges to the use of tools such as futures, unsecured lending, spot Bitcoin ETFs, and now options on these ETFs. This development highlights the growing integration of Bitcoin with traditional financial markets, a trend accelerated by approvals from regulators such as the U.S. CFTC and SEC, which have legalized Bitcoin-related financial products over time.

Bitcoin has played a key role in solidifying its identity as “digital gold” by prioritizing decentralization over increased transaction throughput. This classification provides a framework for traditional financial investors to understand Bitcoin’s role as digital gold in portfolio management, as a risk mitigation tool, or as an inflation hedge. It also provides insight into Bitcoin’s potential valuation trajectory. The total amount of gold above ground is worth approximately $18 trillion, of which $8 trillion is used in jewelry - an area that Bitcoin is unlikely to replace.

However, Bitcoin could capture a portion of the $4 trillion in private investment (bars and coins), $3.1 trillion in central bank reserves, and $2.7 trillion in other uses such as industrial applications and financial institutions holdings. This $10 trillion segment of the gold market is a potential target for Bitcoin. Considering Bitcoin's current market valuation of $2 trillion, this suggests that it has the potential to achieve a 5x growth potential as it continues to position itself as digital gold. There is a significant difference between the ownership of gold and Bitcoin. About 1 billion people own gold jewelry, and another 150 million hold it as an investment, either directly through bars and coins or indirectly through financial instruments such as ETFs. There is a significant difference between the ownership of gold and Bitcoin. About 1 billion people own gold jewelry, and another 150 million hold it as an investment, either directly through bars and coins or indirectly through financial instruments such as ETFs.