It looks like Ethereum’s days as a mere cryptocurrency are numbered. Thanks to its enormous market capitalization, Goldman Sachs is now the highest profile company to have warned against investing in Bitcoin. From Goldman: Ethereum’s market capitalization has risen in the past month from $30 billion to more than $40 billion, demonstrating that it is becoming a more attractive investment for institutional investors.

Everyone knows that Bitcoin is the king, but they don’t understand why. There are two reasons for this, the first being Bitcoin’s intrinsic value. Bitcoin will probably retain its title as the king of cryptocurrencies until Ethereum eclipses its market valuation.

Goldman Sachs Echoes the Growing Opinion that Ethereum Could Overtake BTC

The cryptocurrency community has been wondering for some time whether bitcoin can sustain its leading role as the world’s leading cryptocurrency forever. Opinions are divided, some say it is more than likely because it is the first cryptocurrency and the largest token in the crypto space.

But there are also those who argue that Bitcoin can be overthrown and that Ethereum will. This position was recently supported by Galaxy Digital CEO Mike Novogratz. Novogratz has made a name for himself over the years as a big bitcoin bull, but it looks like he’s starting to change his perspective. Goldman Sachs also spoke, and seemed to echo Novogratz’s comments from a week earlier.

Goldman Sachs highlights the potential of Ethereum

Ethereum has been the second largest cryptocurrency for years, climbing so high thanks to its revolutionary approach to cryptocurrencies and the blockchain. Before ETH, the blockchain was nothing more than a distributed ledger – a list of transactions for the crypto industry. While bitcoin still uses it as such today, Ethereum has shifted its focus from cryptocurrencies to blockchain, highlighting all the possibilities the technology has to offer.

It has been used to store data, develop smart contracts, create dApps, offer token templates to easily create new cryptocurrencies, and much more. All of this has allowed it to become the second largest in the entire cryptocurrency industry, and it has initiated a host of new projects that serve as development platforms, including EOS, TRON, Cardano, and many others.

Now, with the advent of Ethereum 2.0, which promises to lower transaction costs, increase speed and offer a course, more and more people believe it can evolve and surpass the world’s leading crypto currency. Goldman Sachs also seems to be among those who think this will happen, according to a recent research note.

A research note published Tuesday claims that Ethereum’s popularity is skyrocketing. Therefore, it is currently the biggest contender to overtake bitcoin as the most valuable cryptocurrency. Nevertheless, the paper also points out that attention should be paid to the increasing competition between the different components.

Ethereum is not the only rival of BTC

Until now, bitcoin has been the dominant digital currency, with no real competition. However, during the recent series of spikes, it became clear that this was no longer the case, and that the original cryptocurrency had a number of major competitors, including Ethereum itself, as well as Binance Coin and Cardano, which rose rapidly earlier this year. The series of updates to Cardano since the beginning of 2021 suggests that the project is ready to provide Ethereum capabilities and features, but in a much more accessible and advanced form.

It is this competition, Goldman said, that is now a major risk factor. America’s largest bank has said that Ethereum appears to be the cryptocurrency with the most real potential. However, competition between different projects prevents ETH from becoming an established player.

Ethereum has risen recently, while Bitcoin has continued to trade sideways. The price of ETH has risen 13% in the past 7 days, with many believing the upcoming hardfork in London, expected in the coming weeks, is the reason for the jump. Compared to other leading assets, Ether was the biggest player last week, dominating the market by 19%.

However, Goldman also gave his opinion on the situation between cryptocurrencies and gold, noting that even if Ethereum overtook Bitcoin, none of them could overtake gold. At least not in the near future. The reason is simply the nature of cryptocurrencies, which are too risky to liquidate. So gold competes with cryptocurrencies in the same way it competes with stocks or cyclical commodities. They are all advanced, but none of them are reliable at this point.

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