Goldman Sachs analysts expressed optimism about the future of the second crypto-asset on the market, claiming that ETH might replace Bitcoin as a payment method.
At the same time, executives from one of the country’s top investment banks stated that gold is the single asset that Ethereum cannot replace. The reason for such a high rating of the second cryptocurrency’s qualities is that it not only has the most potential for daily use, but it is also the most widely used platform for developing dApps and smart contracts.
Analysts also stated that they are not attempting to minimize BTC’s benefits. He was, is, and will continue to be a digital currency pioneer. However, their analysis and data demonstrate that the most popular cryptocurrency on the market severely lacks real-world utility, whereas Ethereum has it. This is due in part to the transaction speed being “slower” by 7 seconds. According to this metric, Ethereum did not outperform its “ancestor,” with 15 to 20 transactions per second.
According to Goldman Sachs, the volatility of cryptocurrencies makes it difficult to compare them to gold, which remains the best store of value. According to executives from the investment bank, the precious metal competes with digital currencies as well as other volatile assets, equities, and cyclical items. Plus, it’s still a safe strategy to keep your money safe from inflation. The level of opposition among various assets in the crypto business, which makes it hard to term any of them “secure,” is one of Goldman Sachs’ key concerns.
In terms of figures, while gold lost 5.4 percent of its value last year, ETH has increased its rate by 215 percent. This is after accounting for the adjustment of more than 45 percent. In addition, ETH has risen by 856 percent this year as a “younger” blockchain, whereas BTC has grown by 261 percent.
The Celsius Network’s Alex Mashinsky believes that in 2022-2023, ETH will be able to surpass BTC in terms of market valuation. The key reason for this, according to him, will be the difference in the targeted use of different cryptocurrencies. For example, ETH will be used more commonly as a way of lucrative farming than BTC.