Analysts of Goldman Sachs highlighted its optimism about the future of the second crypto-asset in the market, saying that ETH could bypass BTC as a means of payment.
At the same time, representatives of one of the largest US investment banks named gold the only asset that Ethereum cannot replace. The reason for such a generous assessment of the capabilities of the 2nd cryptocurrency is that this token not only has the highest potential for using it daily, but is also the widespread platform for creating dApps and smart contracts.
Analysts also noted that they aren't seeking to downplay the merits of BTC. He was, is and will be a pioneer in the world of digital currencies. But their report and collected data shows that the main cryptocurrency on the market is critically lacking in real use, while Ethereum has it. This is partly attributed to the "slower" transaction speed 7 by second. According to this indicator, Ethereum did not overtake its “ancestor” much, providing a speed of 15 to 20 transactions by second.
Goldman Sachs reiterated that yet the volatility of cryptocurrencies makes it difficult to match them with gold, which is still the best store of value. According to representatives of the investment bank, the precious metal competes with digital currencies as much as with other volatile assets stocks, as well as cyclical goods. Plus, it is still a reliable way to protect your savings from inflation. One of the main concerns of investors at Goldman Sachs is the level of opposition amid various assets in the crypto industry, which makes it impossible to call any of them “safe”.
Speaking in terms of numbers, while gold lost 5.4% in price over the year, ETH managed to increase its rate by 215%. And this is taking into account the correction above 45%. As a “younger” blockchain, ETH has grown by 856% over the year, while BTC has grown by 261%.
Alex Mashinsky of the Celsius Network is convinced that ETH will be able to overhaul BTC in its capitalization in 2022-2023. According to him, the main reason for this will be the difference between the targeted use of these cryptocurrencies. While BTC is used as a store of value, ETH will be used more widely as a means of profitable farming.