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Tuesday, October 4, 2022

Ethereum Will Surpass Bitcoin as a store of value

Ethereum’s real-world use cases give the asset the potential to become the dominant digital store of value in the coming years. This is reported by Business Insider with reference to a research note by Goldman Sachs.

“Currently, Ethereum looks like the cryptocurrency with the highest potential for use, since the platform for which it is a native digital currency is the most popular for developing smart contract applications,” the investment bank said.

Bitcoin has a strong brand, given the first-mover advantage, but lacks use cases, in part due to slow transaction speeds, Goldman Sachs said.

However, no matter which cryptocurrency dominates, none of them will be able to surpass gold as a safe asset in the near future, the bank is sure. Gold competes with cryptocurrency as much as it does with other risky assets such as stocks and cyclical commodities.

We view the precious metal as a defensive inflation hedge, and the cryptocurrency as risky explained Goldman Sachs. Also, the ability of cryptocurrencies to become an asset class that investors consider safe is undermining competition between them, experts concluded.

Earlier, the head of the IOHK company behind Cardano, Charles Hoskinson, expressed the opinion that Bitcoin will lose the competition to Ethereum. Recall that in May 2021, Goldman Sachs recognized cryptocurrencies as an asset class, and a month later expressed the opposite opinion.

Read More: Ethereum Will BLAST OFF Much Further Than BTC

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