Goldman Sachs says that Ethereum (ETH) could replace Bitcoin (BTC) as the dominant digital store of value.
In a new note to clients, the financial giant says that while BTC has the stronger brand, Ethereum likely has the highest number of real use cases, reports Business Insider.
[adinserter block="1"]But the bank does not see either Ether or Bitcoin taking over gold anytime soon. It says that the highly volatile nature of cryptocurrencies does not make these coins a direct competitor to safe-haven assets.
The note adds that the competition among different cryptocurrencies will likely prevent them from being viewed as a safe asset class.
“Gold is competing with crypto to the same extent it is competing with other risky assets such as equities and cyclical commodities. We view gold as a defensive inflation hedge and crypto as a risk-on inflation hedge.”
ETH is the native token of the Ethereum blockchain, which is currently the leading development platform for smart contract applications.
The report also cites Bitcoin’s transaction speed as a potential hindrance. In its current form, Ethereum is only slightly faster than Bitcoin. That is set to change for Ethereum, however, with a series of scalability upgrades planned for the months and years to come.
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