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."