Goldman Sachs says that Ether could overtake Bitcoin as a store of value.
Goldman Sachs, a multinational investment bank based in the United States, thinks the Ethereum blockchain's native crypto has what it takes to unseat bitcoin as the leading store of value crypto.
The bank believes that the use cases for ether (ETH, +2.1 percent) have the most “potential” right now being the most widely used smart contract development platform, according to an article published on Tuesday by Business Insider.
While positive on ether, Goldman's Tuesday note to clients rejected cryptos' superiority to gold when it came to capturing the top rank among safe-haven assets, according to the article.
“Gold fights with Cryptocurrency in the same manner that it competes with other risky investments such as equities and cyclical commodities,” according to the note. “For us, gold is a defensive inflation hedge, whereas cryptocurrency is a risky inflation hedge.”
Competition among cryptocurrencies, according to Goldman, is another risk factor that prohibits the young asset class from being a safe location to put one's money.
Last month, the bank's consumer and wealth management section concluded that cryptocurrencies were "not a suitable investment" for diverse portfolios, and made similar comments.