empty
 
 
Ether to take over bitcoin as dominant digital store of valu...
23-07-2021 15:09
Ether to take over bitcoin as dominant digital store of value
Ether to take over bitcoin as dominant digital store of value

Since the moment ether has made a debut in the crypto market, experts never stop to argue: whether it will be able to dethrone bitcoin and become the main cryptocurrency. Following the recent big drop in bitcoin, the dispute has broken out again. Many experts are already betting on a bright future for ETC.

Analysts at Goldman Sachs believe that ether could overtake bitcoin as the dominant cryptocurrency, surpassing it in terms of market capitalization. "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," analysts at Goldman Sachs wrote. "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," they added. The bank’s statements seem pretty solid but the report does not indicate even the approximate timing when it might happen.  According to CoinGecko, the capitalization of bitcoin is kept at around $653 billion, while the capitalization of ethereum is about $278 billion.  Thus, ether is highly unlikely to reduce this gap quite soon.

As for traditional assets, neither ethereum nor bitcoin will be able to overturn gold in the near future. They will also hardly be considered safe-haven assets due to high volatility.  Gold competes with cryptocurrencies in the same way it does with other risky assets such as stocks and cyclical commodities. This is why Goldman Sachs views "gold as a defensive inflation hedge and crypto as a risk-on inflation hedge."

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS
Can't speak right now?
Ask your question in the chat.
Widget callback