Key Takeaways
- Ethereum will eventually flip Bitcoin says Goldman Sachs
- Ethereum use case applications highlighted as a major factor
- Gold will maintain its position as the leading investment asset
According to a Business Insider report , Goldman Sachs expressed its favorable opinion on ETH in a memo to its clients. The bank explains that Ethereum has the biggest potential for real life application due to its well rounded blockchain network.
Ethereum is the leading smart contract network and is the home of many dAPPs and DeFi protocols. The upcoming migration to Ethereum 2.0 is also seen as a major factor for the leading altcoin.
Ethereum 2.0 is set to improve the Ethereum blockchain by migrating it to the proof-of stake consensus mechanism. This would ensure a scalable blockchain and reduce the cost of transactions associated with the Ethereum network.
Ethereum has also been deployed by several financial institutions as the underlying technology for cross-border transactions. These factors according to Goldman Sachs means that Ether will eventually overtake Bitcoin.
The investment bank also believes that gold will continue to hold its position as the most important store of value. It noted that one of the advantages that gold holds over other assets is its risk factor.
Cryptocurrencies' volatile nature means that they are a risky hedge against inflation and cannot be fully utilized by financial institutions. Goldman Sachs also believes that competition between different crypto assets prevents them from becoming financial havens.
In any case, the bank's attraction to Ether is not a surprise: last month it was considering offering ETH exposure to its clients .Currently Ether marketcap is around $278 billion or 42% of Bitcoin according to data from the Flippening Index.
Do you think Ethereum can surpass Bitcoin in value?
