Will Ethereum (ETH) overtake Bitcoin (BTC)? Goldman Sachs Also Thinks It’s Possible » Crypto Insiders

Goldman Sachs, the massive US investment bank, thinks the market capitalization of ether (ETH) the of can bitcoin (BTC) can catch up. Ether is the native cryptocurrency of the Ethereum blockchain.

The bank says in a note to its customers that it would come as no surprise if ether were the largest store of value, or store of value, is classified under crypto. As reported by Business Insider on July 6:

Don’t be surprised if ether takes over bitcoin as the dominant digital store of value, Goldman Sachs says https://t.co/R9SduGmfjI

— Markets Insider (@MktsInsider) July 6, 2021

According to the bank, this is because Ethereum with its smart contracts functionalities under crypto has the most potential:

“Ether currently looks like the cryptocurrency with the highest real-world usage potential, as Ethereum, the platform on which it is the native digital currency, is the most popular development platform for smart contract applications.”

Smart contracts are a type of digital contracts that are automatically executed as soon as pre-agreed criteria are met. This guarantees that certain transactions will be executed anyway and opens the doors for the development of decentralized applications (dApps) and new markets such as decentralized finance (DeFi).

According to Goldman, bitcoin is currently still ahead because it was the first crypto on the market and therefore has more name recognition. However, the bank says that the Bitcoin network lacks the functionalities of Ethereum and suffers from a low transaction speed. It must be said that Ethereum is still struggling with this for the time being and that both networks are currently working on solutions.

Still, none of this crypto will catch up with gold anytime soon, Goldman says. According to the bank, gold serves as a safe haven for investors, while crypto are risky investments. A month ago, Jeff Currie of Goldman said the same thing. Also, there would be too much competition among crypto which prevents them from serving as a safe haven. Yesterday Alex Mashinsky also said, CEO of Celsius, that he expects ether to overtake bitcoin.

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