1069 days ago • Posted by Charles-Henry Monchau
Goldman publishes a full report on Crypto as an asset class. Sees Ethereum overtaking Bitcoin.
Some key extracts from the report: "Crypto assets should trade as pro-cyclical risk-on assets as they have for the past decade. Gold and bitcoin are therefore not competing assets as is commonly misunderstood, and can instead co-exist (...) In our view the most valuable crypto assets will be those that help verify the most critical information in the economy (...) A blockchain platform like Ethereum could potentially become a large market for vendors of trusted information, like Amazon is for consumer goods today (...) A major argument in favor of bitcoin as a store of value is its limited supply. But demand, not scarcity, drives the success of stores of value. No other store of value has a fixed supply. Gold supply has grown nearly ~2% pa for centuries, and it has remained an accepted store of value. Plenty of scarce elements like osmium are not stores of value. In fact, a fixed and limited supply risks driving up price volatility by incentivizing hoarding and forcing new buyers to outbid existing holders, potentially creating financial bubbles. More important than having a limited supply to preserve value is having a low risk of dramatic and unpredictable increases in new supply. And ether, for which the total supply is not capped, but annual supply growth is, meets this criterion".
Source: www.zerohedge.com
