The U.S. multinational investment bank in a note to clients on Tuesday said that in the coming years, the total market cap of Ethereum might surpass that of Bitcoin, thanks to the popularity of Ethereum-based smart contracts. According to a report published on Business Insider, the bank said:
For the uninitiated, smart contracts are self-executing agreements that do not need the presence of a third party. The contract between the parties involved is directly written into lines of codes that are intended to automatically execute.
Looking at both digital assets, Bitcoin grew by 261% over the past year, while Ethereum recorded an 856% growth within the same period. To be fair, it is worth noting that Bitcoin currently does not offer the same level of functionality as the Ethereum blockchain.
Despite Goldman’s self-confident claims on Ethereum, they asserted that gold is a far better option as a store of value. Goldman also said competition among cryptocurrencies represented another risk factor that prevents the emerging asset class from being a safe haven to store one’s wealth.
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