A report published by the British bank Standard Chartered indicates that the company’s analysts are positive about the future of cryptocurrencies.
The bank’s analysts believe Bitcoin could hit $ 175,000 and Ethereum as high as $ 35,000.
International banking and financial services giant Standard Chartered has published a report on the two leading cryptocurrencies. In fact, the report is called the “Ethereum Investor Guide” and was written by Geoff Kendrick, Christopher Graham and Melissa Chan.
A Standard Chartered research report notes that “ETH and BTC have many things in common” but the Ethereum blockchain has things like smart contracts, decentralized autonomous organizations (DAO), decentralized finance (defi), non-convertible token assets (NFT) and ICOs.
Despite the many possible use cases offered by Ethereum (ETH), the bank says the investment risk may be greater than with Bitcoin (BTC).
In addition to NFT, DAO, defi, ICO and other applications, the Standard Chartered report highlighted the upcoming transformation of Ethereum 2.0. “This change has obvious environmental benefits,” emphasize Standard Chartered researchers. “Because it eliminates the need to use excessive computer power to extract ETH.” The transition from proof-of-work (PoW) to proof-of-stake (PoS) is expected to be phased in gradually, said Kendrick, Graham and Chan.
Standard Chartered’s report also takes into account the “regulatory landscape” and the “competitive landscape”. It mentions blockchains that compete with Ethereum in the world of defi, NFT and decentralized applications (dapps).
“Separate ecosystems already exist and could continue to challenge Ethereum in niche areas” the report highlights. Moreover, “the regulatory problems with Ethereum will be very different from those with Bitcoin,” the bank’s report concludes.
14-09-2021, Mr Advice TEAM