‘Ethereum has more potential and will overtake Bitcoin as the dominant currency’
Global investment bank Goldman Sachs sees more potential in Ethereum than Bitcoin. And even predict that this digital currency will become the dominant currency!
Goldman Sachs is a major US bank. They believe that Ethereum is the cryptocurrency with the highest real use potential. And that it could overtake Bitcoin as the dominant digital store of value. The bank previously explained this, but shared its long-term view on the digital currencies Bitcoin and Ethereum in a note published this week.
Ethereum has more potential than Bitcoin
According to Goldman Sachs. The bank’s analysts argue that Ethereum is easier to use and therefore will overtake Bitcoin as the largest digital store of value. The note states:
“Ethereum currently looks like the cryptocurrency with the highest real-world usage potential as Ethereum is the most popular development platform for smart contract applications.”
But the bank makes a note here, because they (still) see gold as the best option. Neither cryptocurrency can catch up with gold in the short term. The analysts explained that cryptocurrencies are not a direct competitor to gold as a safe haven due to their high volatility.
Gold still a safe(r) haven
Gold is of course much less volatile and the price is not so much based on emotion. The bank goes on to say that gold competes with cryptos to the same extent as it competes with other risky assets such as stocks and cyclical commodities. In addition, the bank also mentions that the competition between different cryptocurrencies is hurting crypto’s ability to become a safe asset class for investors. So it is too restless to become a ‘safe asset’. for now.
The bank is not alone in this. Jim Cramer, the host of CNBC’s Mad Money Show, said he took all his money out of Bitcoin. And then reinvest it all in Ehereum. This is for a similar reason cited by Goldman Sachs.
