Goldman Sachs

Goldman Sachs Believes Ethereum Will “Flip” Bitcoin

Goldman Sachs has noted that the long years of Bitcoin dominance may be ending soon, with the second-largest asset, Ethereum, taking a position as the world-class.

In its recent note to clients, Goldman Sachs identified that Ethereum’s use case would give it an edge over Bitcoin. The bank said that the blockchain with the highest real-time use potential could dominate as a store of value and lead as the asset with the largest market capitalization. 

Per a Business Insider report, “Ether currently looks like the cryptocurrency with the highest real use potential as Ethereum, the platform on which it is the native digital currency, is the most popular development platform for smart contract applications.”

The U.S. multinational investment bank emphasized that the lack of use cases and low transaction speed flaws Bitcoin functionality and makes it inferior to Ether, which has grown faster than Bitcoin. Interestingly, Ether has grown by 856%, while BTC has recorded only 261% growth in the past year.

According to Goldman Sach’s note “Gold is competing with crypto to the same extent it is competing with other risky assets such as equities and cyclical commodities.” 

The bank proceeded to say that “we view gold as a defensive inflation hedge and crypto as a risk-on inflation hedge.”

Recall that we earlier reported that this same sentiment was shared by the CEO of Celsius network who believes that Ethereum could flip Bitcoin in the next two to three years.

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