The analysts at the investment bank Goldman Sachs have recently said that Ethereum has the potential to overcome Bitcoin as a store of value, but not gold. Goldman Sachs analysts noted on Tuesday and have outlined its reason behind this claim saying that Ethereum appears to be the crypto-asset with the highest real use potential.
In accordance with the note shared by the investment bank of Wall Street, Goldman Sachs said that it is one of the most famous development platforms for smart contract applications.
The report mentioned that though Bitcoin has the added advantage of being the first mover in the market, it lacks some of the real use cases of Ethereum.
Well, the reason behind this is the low transaction speed of just 7 transactions per second, whereas, on the other side, Ethereum offers a transaction speed of 15-20 transactions per second.
In addition to this, the report by Goldman Sachs revealed that neither of the assets from Bitcoin and Ethereum is capable of overcoming gold as a store of value as they do not stand in competition with gold due to their high volatility and added:
So far this year, gold has given negative returns of 5.4%, whereas, on the other side, Ethereum has surged over 216% from the beginning of this year.
Moreover, another thing to note here is that the huge return on the second-largest cryptocurrency is calculated keeping in mind the recent correction of nearly 50% in the price of Ethereum.