Goldman Sachs believes Ethereum (ETH) is Likely to Dominate the Digital Store Soon and Become the New Store of Value
Goldman Sachs has said while writing to its clients that the Ethereum blockchain has the highest recorded real use cases. In the note, this leading global investment banking, securities, and investment management firm has observed that due to the increasing popularity of ETH, most people have started to prefer the smart contracts of Ethereum.
They believe that this may make Ethereum (ETH) overtake Bitcoin (BTC), in terms of market capitalization, in few more years. The firm suggested that soon enough Ethereum may start dominating the digital store. If this happens, Ether will become the first cryptocurrency ever to overtake BTC.
Goldman Sachs said that among all smart contract applications, Ethereum has the highest recorded ‘real use-case’. ETH is the most popular as well as the most used development platform currently. Ethereum network is 2-to-3 times faster than Bitcoin, in terms of the number of transactions. In a second, Ethereum can handle 15-to-20 transactions in place of 7 transactions of the Bitcoin network. Moreover, Bitcoin focuses only on network security and hard money and lags behind the Ethereum network in terms of providing a high level of functionality.
When it comes to the question of surpassing Bitcoin, it can be said that Ethereum (a younger network than Bitcoin) has grown faster than BTC. In 2020, BTC grew by 261% and ETH grew by 856%. This means, last year, ETH grew 3-times faster than BTC.
Goldman Sachs has also said that in terms of a store of value, gold is superior to cryptocurrency assets. They called gold a defensive inflation hedge and cryptocurrencies a risk-on inflation hedge.