Goldman Sachs stated that the smart contracts of Ethereum actually show that it could overtake Bitcoin as being the number one crypto on the market soon. He also said that the blockchain with the highest potential is Ethereum, and that it could be the dominant digital store of value.
Goldman thinks that the total market capitalization of Ether could actually overtake the total market cap for Bitcoin in the following years: “[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.”
Smart contracts include software that enables the automated execution of digital contracts. This makes it easier with the decentralized finance (DeFi) protocols and the decentralized applications that are crypto-powered.
Bitcoin’s advantage is big, but it does lack some of the use cases of Ether and when it comes to transaction speeds, it lags. Bitcoin focuses more on hard money and network security, and it does not come with the same level of functionality as Ethereum. Ethereum is younger, and it has grown up at a more faster rate than Bitcoin. Bitcoin grew 261% in the past year, but Ethereum got up by 856% – in the same period.
With all that in mind, analysts say that gold is of a superior value to digital assets, as being a “defensive inflation hedge”, and crypto being a “risk-on inflation hedge.”
This competition between cryptocurrencies is a huge risk factor that prevents them from becoming safe assets right now. They may be the future of everything, but, right now, they are not an investable asset class.