Goldman Sachs stated in a report to customers on Tuesday that the blockchain with the highest “practical potential” is Ethereum, indicating that its ETH may become the dominant store of digital value.
Therefore, Goldman Sachs predicts that the total market value of Ether (ETH) may exceed the total market value of Bitcoin (BTC) in the next few years. according to A report from Business Insider.
“[Ether] At present, it looks like the cryptocurrency with the highest practical use potential like Ethereum. It is a platform for native digital currency and the most popular smart contract application development platform. “
Smart contract Including software that can automatically execute digital contracts, the technology promotes the prosperity of decentralized finance (DeFi) protocols and encryption-driven decentralized applications (DApps).
Analysts pointed out that Bitcoin’s first-mover advantage gave it a stronger brand, but believed that it lacked some use cases for ether and its transaction speed was lagging. Due to its focus on hard currency and network security, Bitcoin has not yet provided the same level of functionality as Ethereum.
As a young network, Ethereum can also grow at a faster rate than Bitcoin. Although Bitcoin has grown by 261% in the past year, ETH has grown by 856% over the same period.
Although they believe that Ethereum is superior to Bitcoin, analysts also believe that gold is a better means of preserving value than digital assets, describing gold as a “defensive inflation hedge” and encryption as an “inflation risk hedge.”
“This competition between cryptocurrencies is another risk factor preventing them from becoming safe-haven assets at this stage.”
This report was released one month after analysts at Goldman Sachs Investment Strategy Group told clients that cryptocurrencies are not even an “investable” asset class.Analyst Say:
“Although the digital asset ecosystem is likely to completely change the future of everything, this does not mean that cryptocurrency is an investable asset class.”
Banks are not the only ones who noticed that Ethereum surpassed Bitcoin in some substantial way.The founder and CEO of Celsius Networks told Kitco News on Monday that this is a crypto depository and lending company that manages $17 billion in digital assets Ether has been eclipsed In terms of Bitcoin held by platform users and believe it will do so in the wider world in 2022 or 2023.
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