Leaked Goldman Sachs Report Predicts ‘High Chance’ of Ethereum Eclipsing Bitcoin
A leaked Goldman Sachs report has come to the limelight at a time when Bitcoin corrected by almost 50% from its all-time high (ATH) at US$65,000 and Ethereum corrected by over 50% from the over US$4,000 per ETH price it rose earlier in May 2021. The leaked report predicted that there is a “high chance” for Ethereum (ETH) to overtake Bitcoin (BTC) as a “dominant” store of value. The report also called ETH the “Amazon of information”.
As per the leaked sections of the Goldman Sachs report on Twitter, the renowned investment bank’s analysts have said:
“Given the importance of real uses in determining the store of value, ether has a high chance of overtaking bitcoin as a dominant store of value.”
The report makes it clear that Ethereum price surged over the years because of:
- The soaring popularity of decentralized finance. It uses cryptocurrency technology to recreate traditional financial instruments including loans and interests. This decentralized finance is designed to replace the bank’s role with the help of blockchain-based protocols.
- The rise of non-fungible tokens (NFTs) for digitizing art and collectible items. The Ethereum blockchain is primarily used for developing and issuing NFTs.
The Goldman Sachs analysts wrote in the leaked report that:
“The ethereum ecosystem supports smart contracts and provides a way to create new applications on its platform… Most decentralized finance (DeFi) applications are being built on the ethereum network, and most non-fungible tokens (NFTs) issued are purchased using ether. The greater number of transactions in ether versus bitcoin reflects this dominance.”
Over the last 12-months, the prices of both Bitcoin and Ethereum have increased. However, the extent of increase is greater in the case of ETH than that of BTC. While ETH price increased by 1,000%, BTC price increased by 300% in the last 12-months (even after taking the last week’s price crash into account).
At the end of 2020, some upgrades were initiated on the Ethereum for helping the Ethereum network to scale and reduce its sky-high transaction costs. With the continuation of these long-awaited upgrades put in place, the ETH price could reach heights that were never witnessed before.
While comparing Ethereum with Bitcoin, Kosala Hemachandra, the chief executive of MyEtherWallet, has said:
“Unlike bitcoin, ethereum is not just a value token, meaning it actually fuels all use cases built on top of the ETH blockchain…DeFi, NFTs, decentralized applications… Bitcoin is simply a value token with no clear roadmap. Even with the price plunge, long-term development is unaffected and ethereum is well on its way to market dominance over bitcoin.”
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