The American multinational investment bank Goldman Sachs believes that the original crypto Ethereum blockchain is needed to remove Bitcoin (BTC, + 0.09%) as the dominant cryptocurrency stock. According to a Business Insider report on Tuesday, the bank believes that cases of ether use (ETH, + 2.71%) currently have the greatest potential, representing the most popular development platform for smart contracts. The report refers to Goldman’s note from Tuesday for clients who, although bulls on the air, denied the superiority of cryptos in relation to gold when it was supposed to take the first place among the assets of safe-havens.
Gold competes with crypto-technology to the same extent as it competes with other risky assets such as stocks and cyclical commodities, the note said. We see gold as defensive protection against inflation and crypto as a protection against the risk of inflation.
Goldman also said that competition among cryptocurrencies is another risk factor that prevents the resulting asset class from being a safe place to park someone’s investment. The comments are reminiscent of last month’s statements by the bank’s consumer and wealth management department, which concluded that cryptocurrencies are not a sustainable investment for diverse portfolios.
An analysis of Vu Blockchain’s Ethereum foreign exchange reserves shows that figure19.8 million ETH has reached its lowest point in 2021. A decrease in foreign exchange flow is usually taken as a bullish sign that suggests that investors are drawing balance sheets for long-term storage. With less liquid supply floating around stock markets, consistent demand dynamics should push up the price. Many see the development of Ethereum as a driver of investor confidence. According to the assessment of the leading developer, the long-awaited upgrade of London for the Ethereum network will start on August 4.
Ethereum chief developer Tim Beiko announced a proposal to activate the block on Github on July 6, revealing that the upgrade to the mainnet has been set up on block 12,965,000. This is expected to be the estimated date of August 4 for the London hard fork, and not the middle and end of July as previously expected. The goal will become official if different teams of Ethereum clients agree with the proposal. Developers monitor test networks to see how upgrades run before deciding on a home network startup time frame.
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