The US bank JPMorgan comes to the conclusion in a recent analysis that Ethereum is superior to Bitcoin in many respects.
JPMorgan analysts recently released a report on cryptocurrencies and their respective growth potential, according to consistent media reports . The advantages and capabilities of Bitcoin are certainly recognized in it. However, the experts clearly see Ethereum as the leading crypto currency in the coming years. Bitcoin is still clearly ahead in terms of market capitalization. However, if interest rates rose, the tide could turn in Ethereum’s favor, the analysts said:
The rise in bond yields and the possible normalization of monetary policy are putting pressure on Bitcoin as a form of digital gold, just as higher real returns have put pressure on traditional gold
say the analysts at JPMorgan. If interest rates rise, investing in an asset that has stable value, the note says. The ever-increasing share of NFTs, gaming and stable coins on the crypto market makes a diversified portfolio more attractive. This is safer than betting solely on Bitcoin, which still has a reputation for great volatility.
JPMorgan anticipates Ethereum compliance with Bitcoin
Furthermore, the analysts at JPMorgan have of course also taken a close look at the price development of the two largest crypto currencies. They come to the conclusion that Ether has consistently performed better than Bitcoin year-on-year. The numbers for 2021 alone show a great advantage for Ethereum. If you compare the performance of both digital assets side by side, you can see that Ethereum is up more than 500 percent this year. With Bitcoin it was around 96 percent.
If this trend continues, Ethereum could very well outperform Bitcoin’s market capitalization in the next five years, according to the experts. A report published by JPMorgan about four weeks ago saw the “fair value” for Bitcoin at only USD 35,000.