Ethereum is poised to overtake bitcoin at the top of the crypto food chain, according to research from Goldman Sachs.
The US banking heavyweight believes ether has the greatest potential to become the development platform of choice for smart contracts.
Goldman though was less enthusiastic about either’s place as a haven for money in volatile times and said cryptos still lagged behind gold.
“Gold is competing with crypto to the same extent it is competing with other risky assets such as equities and cyclical commodities,” the note said.
“We view gold as a defensive inflation hedge and crypto as a risk-on inflation hedge.”
Competition from newer, emerging crypto also posed another threat to the status as a safe hedge to fiat currencies.
The comments echoed remarks last month by Jeff Currie, Goldman Sachs’ head of commodities.
“They are substitutes for risk-on inflation hedges, not risk-off inflation hedges,” he said then.
“You look at the correlation between bitcoin and copper, or a measure of risk appetite and bitcoin, and we’ve got 10 years of trading history on bitcoin, it is definitely a risk-on asset,” Currie said.