Two Reasons why JP Morgan and Goldman Sachs Analysts Think Ethereum Will be a Store of Value Than Bitcoin
Two of the world's largest banks think ETH will eclipse BTC to be a store of value at some point in the future.
They are net bullish on ETH.
But why? Is this a play?
For one, Ethereum has no fixed supply cap. That means, every year, new coins are being minted to meet operational expenses like platform development and whatnot.
On the other hand, Bitcoin has a total fixed supply of 21 million. Out of those, over 18.5 million have been mined.
There is no way the total amount of BTC will be inflated. This certainty is precisely what makes supporters buoyant, describing the network as digital gold and a preferred store of value.
Not so much for ETH.
However, this is beginning to change.
Ethereum will soon implement a new hard fork that will gradually burn Gas fees as stipulated under the EIP-1559.
It is projected that once this proposal is live, Ethereum's inflation rate will fall below Bitcoin's, making ETH an on-demand Store of value.
The hard fork is scheduled for July 2021.
Beyond EIP-1559, Ethereum is activity dense, generating revenue through projects in DeFi, gaming, NFTs, and much more.