Goldman Sachs Report: Ethereum has the potential to surpass Bitcoin as a store of value | Author: The Crypto Basic | Capital | July 2021
Ethereum, the world’s second largest cryptocurrency, has recently received support from Goldman Sachs, one of the leading investment banks in the United States.
In a research report on Tuesday, New York investment bank Goldman Sachs mentioned that the growing popularity of Ethereum has made it a major contender to surpass Bitcoin as the most valuable digital currency.
According to a report, the investment bank believes that Ethereum currently appears to be the most promising cryptocurrency. According to the report, it is the most popular smart contract application development platform.
According to a report, Ethereum may surpass Bitcoin as the dominant store of digital value in the next few years report Published by Business Insider citing Goldman Sachs’ latest research report.
However, Goldman Sachs believes that the increasing competition among various cryptocurrency assets including Ethereum, Bitcoin, Binance Coin and Cardano is a major risk factor.
The Goldman Sachs research report states:
“ETH currently seems to be the cryptocurrency with the highest practical use potential, because Ethereum is a platform for native digital currency and the most popular smart contract application development platform. The competition between cryptocurrencies is preventing them from becoming at this stage Another risk factor for safe-haven assets,”
Goldman Sachs pointed out that despite the recent surge in popularity of cryptocurrency assets such as Ethereum and Bitcoin, none of them can surpass gold in the short term. The bank emphasized the risk of digital currency.
The research says:
“Gold competes with cryptocurrencies to the same degree as other risky assets such as stocks and cyclical commodities. We treat gold as a defensive inflation hedge, and cryptocurrencies as an inflation risk hedge.”