Goldman Sachs: Ethereum has every chance to surpass Bitcoin - - Financial Market Media No. 1 in the World Goldman Sachs: Ethereum has every chance to surpass Bitcoin Goldman Sachs: Ethereum has every chance to surpass Bitcoin

May 28, 2021

Goldman Sachs: Ethereum has every chance to surpass Bitcoin

 As we said, the fundamental background for bitcoin has remained extremely weak lately. By and large, all market participants are now awaiting a final decision from the governments of China and the United States. Recall that China plans to ban mining, and some mining pools have already begun to assemble their equipment to move to the countries of North America. In the U.S., however, they are going to introduce a rule of mandatory transfer of information to the Internal Revenue Service about all bitcoin transactions over $10,000. Thus, the second-largest economy in the world is going to tighten the rules for the entire cryptocurrency environment, while the first-largest economy will establish strict control over all large transactions.

Naturally, the popularity of bitcoin, and with it, all other cryptocurrencies, is falling. Since bitcoin was originally popular for being free from control from the governments and central banks, because of its anonymity. However, many experts continue to believe that bitcoin will only continue to grow in the future. This opinion is shared, in particular, by Mike McGlone, a strategist at Bloomberg. He is confident that the growth of the cryptocurrency will continue in the future, but at this time it can really be under pressure due to the high consumption of electricity, most of which is also "not good" for the environment. McGlone also noted that bitcoin mining is becoming cleaner and greener, and the coin itself continues to target the $100,000 mark.

At the same time, one of the largest investment banks in the world, Goldman Sachs, admitted that Ethereum in many respects looks much more attractive than bitcoin. The bank believes that "ether" can become the number one cryptocurrency store of value in the world. The bank's case is that the ethereum network is a decentralized finance vehicle that uses a variety of technologies that replace banking products such as loans or borrowings. Simply put, some of the functions of banks can be easily transferred to the ethereum cryptocurrency. Naturally, so far only in theory. Experts also note that new applications can be created on the basis of the ethereum platform, as well as conclude smart contracts.

Recall that this is not the first time that experts talk about ethereum more flatteringly than about bitcoin. Among other, higher prospects of ether, note its lower cost, greater growth potential, greater convenience in calculations, lower fees, higher transaction speed on the network. At the time of writing this article, ether is trading at $2,700 per coin, it has recovered from the fall almost identical to bitcoin. Thus, the correlation between the two most well-known cryptocurrencies remains high. At least for the time being.