30.07.2021

Ethereum could become the dominant cryptocurrency

Analysts at Goldman Sachs believe that the Ethereum blockchain has the greatest “real user potential” and that the Ethereum digital asset itself could become the dominant digital store of value.

The bank also noted that the Ethereum blockchain is currently “the most popular platform for the development of applications using smart contracts.”

Moreover, Goldman Sachs predicts that the capitalization of Ethereum may eventually bypass the similar parameter of Bitcoin. Recall that in 2020, bitcoin rose in price by 261%, while Ethereum soared by 856%.

Goldman Sachs still does not discount gold as a more attractive store of value than any digital asset, describing the precious metal as a “defensive tool against inflation.”

Digital assets in the bank are called “a risk instrument against inflation.”

Goldman Sachs analysts noted:

“Gold competes with cryptocurrencies in the same way that this precious metal competes with other risky assets such as stocks or cyclical investment commodities.”

Goldman Sachs also stated that:

“Competition between cryptocurrencies is another risk factor that prevents them from becoming low-risk savings instruments at the moment.”

Meanwhile, Bitcoin remains in the field of vision of Goldman Sachs: the bank has made an application to launch a multi-purpose ETF, whose funds can potentially be invested in bitcoins.

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