According to a recent report by Goldman Sachs, ETH is the cryptocurrency with the greatest potential. This is stated by Business Insider, who added that the company wrote in a note:
“ETH currently looks like a cryptocurrency with the highest potential for real use, because ETH, the platform on which it is the native digital currency, is the most popular development platform for smart contracts.”
ETH, the cryptocurrency with the greatest potential
Business Insider, which did not announce its source for the report, also speculates that according to the banking giant, ETH could even outperform BTC in market capitalization, although BTC is more attractive due to its first-player advantage. However, BTC has several real use cases and has too low a transaction speed.
But with the Lightning Network, which is already widely used in El Salvador, for example, BTC transactions are faster and cheaper than Ethereo, and this is not the only indication that Goldman Sachs may still be at the beginning of the cryptocurrency understanding phase.
Interestingly, a few weeks ago, Jeff Currie, Goldman Sachs’ head of commodity research, showed that he had a very clear and accurate idea of BTC’s role in global financial markets, postponing ETH because it simply had a different role.
In the same note, Goldman Sachs also reveals that he believes that neither ETH nor BTC will be able to beat gold any time soon, mainly due to high volatility. It also adds:
“Competition between cryptocurrencies is another risk factor that prevents them from becoming safe assets at this stage.”
BTC vs ETH?
There is no competition between BTC and Ethereum. ETH competes with other similar platforms, such as Binance Smart Chain or Cardano, while BTC has no real competitor yet.
The idea that ETH was or could be a competitor of BTC has been around for some time. For years, the hypothesis that ETH can outperform BTC in market capitalization when its price rises more than BTC, as during 2021, has been constantly emerging.
However, the hypothesis that these two cryptocurrencies compete with each other is definitely wrong, and even the question of overcoming market capitalization has proven to be misleading on several occasions. In some respects, it may remain plausible, but it seems that ETH’s price trend still depends too much on BTC’s development to imagine a difference between the two trends in the near future that could actually lead ETH to outperform BTC in terms of market capitalization.