The real-world scenarios for Ether make it likely to become the main store of value among cryptos in the coming years, Business Insider has reported citing a note sent by Goldman Sachs to its clients. In this, the bank's analysts have said:
"Currently looks like the cryptocurrency with the highest real use potential as Ethereum, the platform on which it is the native digital currency, is the most popular development platform for smart contract applications."
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Goldman Sachs experts believe that over time, Ether will take over Bitcoin as the largest crypto. In spite of the fact that Bitcoin, as the main cryptocurrency, enjoys greater recognition, it cannot be applied in many situations where Ether is used, also due to its slower transaction processing speed.
However, analysts have pointed out that no cryptocurrency will be able to outperform gold in the near future. According to them, cryptocurrencies are a volatile asset, while gold is defensive and therefore do not compete directly with each other:
"Gold is competing with crypto to the same extent it is competing with other risky assets such as equities and cyclical commodities. We view gold as a defensive inflation hedge and crypto as a risk-on inflation hedge."
The adoption of cryptocurrencies as a safe haven is hampered by, among other things, competition within the market, analysts write:
"This competition among cryptocurrencies is another risk factor that prevents them from becoming safe haven assets at this stage."