Last Updated: 9 July 2021
Goldman Sachs, a global investment bank, says that ether has more potential than bitcoin as a cryptocurrency. This cryptocurrency can take over bitcoin soon and can become a real store of value for people.
Goldman Sachs Forecasts Ethereum Rise
On Tuesday, Goldman Sachs predicted that Ethereum could become the dominant store of value in the near future and overtake bitcoin as a reliable cryptocurrency. The company’s analyst said that it looks like a cryptocurrency with real value and potential as of now. Its platform is one of the most popular platforms for smart contract applications.
On the other hand, Goldman Sachs analysts said that no matter how much any of the cryptocurrencies will grow, none of them will overtake gold. According to their analysts, neither of these cryptocurrencies are real competitors to gold. The competition between Gold and cryptocurrency is the same as gold’s competition with other risky assets. Gold is defensive inflation, and cryptocurrency is a high-risk inflation hedge. The competition of cryptocurrencies with each other is affecting its ability to compete with other assets. That is why it is a highly volatile asset as of now.
Apart from Goldman Sachs, other notable people and companies are preferring ether over bitcoin. The host of CNBC’s Mad Money Show, Jim Cramer, revealed that he took out all of his money from bitcoin and invested it in ethereum because of the same reasons Goldman Sachs stated. Moreover, JP Morgan also described the reason behind the success of ethereum. They published an article in April titled “Why Ethereum is Outperforming Bitcoin?”
Current Market Situation of Bitcoin and Ethereum
During the last 24 hours, Bitcoin and other cryptocurrencies have dropped in value. Bitcoin, in particular, dropped from $33k. The entire crypto market has seen a 6% drop from yesterday. As of now, the market stands at $1.38 trillion. During the last 24 hours, BItcoin has dropped 6.4%, and the market value per token is now $32,100. It is down by 49.64% from it’s all-time high value. The dominance of bitcoin is dropped by 44.3%, but, on the other hand, ether’s dominance is increased by 18.3%. In terms of market capitalization, ethereum stands at $251 billion. It has increased over 9% as of yesterday, but during the last seven days, ETH has increased by 2%. The value of one unit of ETH at closing yesterday was $2155.
In recent hours, Bitcoin has lost 7% and is exchanging around $32.3k. The value dynamic of the primary digital currency with genuinely diminished exchanging volumes is viewed as a stressful sign. All things considered, if few open positions influence the market, any little tempest could transform into an enormous scope auction, disturbing a torrential slide of stop orders. The current levels close to the nearby lows of the most recent two months make us watch anxiously for additional developments. The decay of the principal digital currency under $30k will probably trigger another flood of liquidation. However, the most disturbing thing for crypto-aficionados is that such a result will highlight the drawn-out nature of the revision, expanding the hypothesis around another ‘crypto winter’ like in 2018.