Ethereum To Overtake Bitcoin?
According To Goldman Sachs – Ethereum To Overtake Bitcoin As A Store Of Value
Banking giant Goldman Sachs believes Ethereum (ETH) will overtake Bitcoin (BTC) as a store of value in the future.
Santiago Roel Santos on a Twitter thread covered excerpts of their research paper detailing their reasons:
“Given the importance of real uses in determining store of value, [Ethereum] has a high chance of overtaking Bitcoin as the dominant digital store of value. The Ethereum ecosystem supports smart contracts and provides developers a new way to create new applications on its platform. Most decentralized finance (DeFi) applications are being built on the Ethereum network, and most non-fungible tokens (NFTs) issues today are purchased using Ether. The greater number of transactions in Ether versus Bitcoin reflects this dominance.
As cryptocurrency use in DeFi and NFTs become more widespread, [Ethereum] will build its own first-mover advantage in applied crypto technology.“
They also make an argument that the limited supply of Bitcoin does not necessarily make it a better store of value than Ethereum.
“A major argument in favor of bitcoin as a store of value is its limited supply. But demand, not scarcity, drives the success of stores of value… In fact, a fixed and limited supply risks driving up price volatility by incentivizing hoarding, potentially creating financial bubbles.”
Interestingly, Goldman Sachs has now recognized Cryptos as a new valuable asset class. Their research paper and positivity around Ethereum has got many altcoin Crypto investors especially excited about this “bullish” signal.
Does the Goldman Sachs prediction of Ethereum to overtake Bitcoin seem realistic? Or is this way off the mark? Let us know your thoughts in the comments below.
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