Goldman Sachs believes that ETH can outperform BTC, but not gold

Goldman Sachs believes that ETH could outperform BTC as a store of value and not gold as we can see more of analyst attitudes in the latest Ethereum news.

In a notice to investors Tuesday, Goldman Sachs outlined reasons for believing that Ethereum could outperform Bitcoin as a store of value. According to the note, Goldman Sachs believes ETH is the cryptocurrency with the highest potential for real-world usage, adding that it is reportedly the most popular smart contract application development platform.

Bitcoin may have a stronger brand thanks to its first mover advantage, but added that BTC is missing some of ETH’s oft-cited real world use cases. This is due to the slow transaction speed, 7 transactions per second, and Ethreum is not much faster in its current state, but is around 15-20 transactions per second. The bank has stated that no crypto asset can be compared to gold as a store of value, arguing that its high volatility does not make them comparable:

“Gold competes with cryptocurrencies as much as it does with other riskier assets like stocks and cyclical commodities. We see gold as protection against inflation and crypto as protection against inflation. “

What it doesn’t compare is the benefits between the two. So far, gold is down 5.4% while Ethereum is up more than 215% from current levels, and that includes a correction of 46%. Goldman added that competition between different assets also prevents it from being considered a safe haven during this period. Recently, the banking giant exposed crypto assets, even gold, with a report in June that contradicted its current findings:

“To argue that bitcoin and crypto are a digital version of gold does not add value to bitcoin and other cryptocurrencies because gold itself is not a store of value – consistent or reliable.”

There’s a clear divide within the bank on its approach to crypto, and Goldman Sachs led a $ 15 million investment round for Coin Metrics. The bank added Bitcoin to its annual earnings report, and Goldman even filed a Bitcoin ETF application with the SEC, according to crypto-custodian New York Digital Investment Group.

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