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November 27, 2022
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Goldman Sachs: ethereum will be a better investment than bitcoin –

Analysts from the investment bank Goldman Sachs believe that ethereum will ultimately become a better store of value than bitcoin. However, the cryptocurrency is worse than gold.

Goldman Sachs on ethereum: This is a cryptocurrency that has great potential

Investment bank he considersthat now, ethereum promises to be the cryptocurrency with the highest potential for actual use in the economy. It has been added that today it is the most popular development platform for smart contract applications. In addition, it is the foundation of the DeFi, NFT and ICO market.

Although Bitcoin has a stronger brand, it is synonymous with “cryptocurrency”, and its logo is better recognizable, but ETH may be a better investment. The bank’s experts note that Ethereum is already technologically better than the BTC network. In the latter, only 7 transactions per second are possible. Ethereum in its current state offers 15-20 transactions per second. Ethereum 2.o will increase the network capacity even more, which could prove to be a breakthrough for this blockchain.

Goldman Sachs, gold… and ethereum

However, the bank also stated that no cryptocurrency assets can match gold as a store of value:

Gold competes with cryptocurrencies as much as it competes with other risky assets such as stocks. We see gold as a defensive hedge against inflation and cryptocurrencies as a hedge against inflation.

What was not compared in the report, however, are the profits that leading cryptocurrencies and the precious metal can bring. This year alone, gold lost 5.4% of its value, while ethereum gave investors a profit of over 200%.

Goldman Sachs added that competition between different cryptocurrency assets also prevents them from becoming safe assets at this stage of development.

It is worth noting, however, that in April, the bank added bitcoin to its annual report on the profits of individual assets. In turn, in March he submitted an application to the SEC to establish a bitcoin ETF.

Ethereum 2.0 will strengthen the position of ETH

Work on Ethereum 2.0 is ongoing within the Ethereum network. This is a series of network improvements that will make it more bandwidth. In addition, the changes are expected to reduce grid energy consumption and increase the security of the entire system. Technically, Ethereum will become a Proof-of-Stake (PoS) blockchain. This is a huge change in performance that should bring great benefits as well.

Current bitcoin rate and other cryptocurrencies, you can always check the tabs: bitcoin and the cryptocurrency rate on the website . A place where you can buy BTC and more coins, include cryptocurrency exchange BitBay.net. If you do not have an account on BitBay yet, from this article you will learn how to efficiently create one: LINK.

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