Crypto Currency News

Goldman Sachs warns ether could overtake bitcoin as store of value

The bank's analysts backed gold, but recognized the potential of cryptocurrencies.

The team of analysts at the US bank Goldman Sachs stated in a statement that Ether (ETH) will become a better store of value than Bitcoin (BTC). So far, the annual returns on both assets justify their stance, as ETH carries over 200%, while BTC barely reaches 20%.

Specialists consider that the second largest cryptocurrency on the market currently seems to have the greatest potential for “real use”. While BTC has a longer track record in terms of adoption and financial instruments, ETH has emerged as the most popular development platform for smart contract applications.

Despite the analysis of digital assets, Goldman Sachs is still a traditional bank. The analysts of the organization highlighted gold as the best possible store of value, since it does not have the volatility characteristic of cryptocurrencies.

“Gold competes with cryptocurrencies to the same extent that it competes with other risk assets, such as stocks and cyclical commodities,” the analysts noted. And they added: “We see gold as a defensive hedge against inflation and cryptocurrencies as a hedge against inflation risk.”

In order not to attack the precious metal, the Goldman Sachs team avoided comparing the annual performance of each; Since January 1, the price of gold has fallen by more than 5%.

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