- Goldman Sachs has stated that Ethereum could best Bitcoin as the leading digital store of value in the coming years.
- The bank says that Ethereum’s real-life use cases give it an edge over other crypto assets.
- While a “Flippening” could eventually take place, it is unlikely to be anytime soon.
Bitcoin and Ethereum are the two leading cryptocurrencies, cumulatively accounting for around 65% of the entire crypto market. While they are intended to serve very different purposes, still they have some pivotal similarities:
- Both are digital currencies and can be stored in a cryptocurrency wallet.
- Both are decentralized.
- Both use blockchain technology that facilitates operation without the need for a central authority.
Aside from these, the two largest cryptocurrencies are designed to tackle very different hurdles. Bitcoin, for instance, was created to be an open-source, permissionless, and peer-to-peer payment system. However, it has now evolved to be more of a store of value or the so-called digital gold than a payment system.
On the other hand, Ethereum is an entire ecosystem where developers can build Dapps, smart contracts, or even new cryptocurrencies on top of its blockchain. Moreover, with DeFi growing day by day, Ethereum’s utility as the most capital efficient asset is growing stunningly.
Nevertheless, these discrepancies couldn’t prevent comparisons between Bitcoin and Ethereum. As Ethereum manages to outperform Bitcoin in distinct ranges, the possibility of a “Flippening” — an event where Ethereum flips Bitcoin as the leading cryptocurrency — finds a new soul.
Goldman Sachs Predicts the “Flippening”
The leading investment firm Goldman Sachs has declared that Ethereum could exceed Bitcoin as the prevailing digital store of value in a matter of years. The bank reasons that the ample use cases of Ethereum give it an advantage over other cryptocurrencies. The bank stated:
[Ether] 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.
Goldman Sachs argues that Bitcoin’s stronger brand attribute is because of its first-mover advantage. Furthermore, the bank slams Bitcoin by stating that it lacks the majority of Ethereum’s real use cases. Apart from Goldman Sachs, other analysts have also spoken about the possibility of a “Flippening”.
Two Prime’s chief investment officer Nathan Cox had previously stated that Ethereum could overtake Bitcoin, though it would take a long timeline. “In the long, long, multi-year timeline, yes, ethereum will flip bitcoin. It’s just now starting to be understood by the second-tier adopters. Ethereum’s utility alone will outstrip anything else,” he stated.
Nevertheless, what is common among almost all analysts is that the “Flippening” is not just around the corner. Historically, Bitcoin has been exceptionally successful in attracting big money — something we are yet to saybabout Ethereum.