In terms of market trends, Goldman Sachs notes that the important difference between the current digital currency sales market and the 20 17-20 18 bull market lies in the participation of investors. However, with the recent slowdown of investor participation (the decrease of assets injected by digital currency ETF) and the diversification of alternative currencies, the sales market has once again become the core of investors.
Goldman Sachs shows that this shift from institutions to shareholders is increasing the probability of a sharp decline in the sales market. At this stage, the high uncertainty of the sales market will be maintained until digital currency has the main potential for the development of the real economy independent of prices.
The development potential of Ethereum is huge.
Goldman Sachs shows that Ethernet system software is suitable for smart contracts and provides a way for developers to build new applications. At this stage, most blockchain technology and finance Industry (DeFi) applications are created on the Internet of Ethereum, and most irreplaceable tokens (NFT) are also purchased with Ethereum.
Compared with BTC, the turnover of Ethereum is higher. With the more and more extensive application of Ethereum in DeFi and NFT, Ethereum will create its own advantages in using encryption algorithms.
Goldman Sachs is concerned that Ethereum can also safely and privately store all the basic information content on the blockchain technology ledger. These information contents can be summarized and bought and sold through tokens. This represents that the Ethernet service platform has development potential and becomes a large and medium-sized trade market with reliable information content.
At present, investors have been able to sell digital art and collectibles on the internet according to NFT, but this is only a small part of its specific main use.
Goldman Sachs believes that in the future, I can store my medical data according to Ethereum and sell it to medical research enterprises. The data files on the Ethereum are likely to contain personal data, including property use rights, medical history and even patent rights.
Another advantage of Ethereum is that it is the world's basic network server for blockchain technology. Different from the centralized network server such as okex or Microsoft, this is likely to provide a solution for * * * to enjoy the data information that comes with resources.
The scarce resources of BTC cannot support the storage of its use value.
The key reason why BTC is suitable for use in the sales market is its limited supply. But Goldman Sachs feels that the success of promoting value storage depends on demand, not scarce resources.
At the present stage, the key price storage attribute in the sales market has a stable supply: the supply of gold has been increasing at a rate close to 2% in many new centuries, but gold is still an accepted appreciation method. However, heavy elements like osmium do not use value storage.
Goldman Sachs notes that fixed and limited supply is likely to stimulate accumulation, drive new customers to bid higher than current customers, and then push up price fluctuations, resulting in financial bubbles. Compared with the relatively limited supply to maintain the use value, it is more critical to greatly reduce the new supply and unpredictable analysis and improvement. At present, there is no limit to the total supply of Ethereum, but there is a limit to the annual supply increase to reach this standard.
The technological essence of the rapid development trend has got rid of the advantage of giving first.
The application of BTC will make digital currency's core sales market feel that it has a first-Mover advantage and a huge customer base.
However, Goldman Sachs stressed that historical time has long proved that the advantages of pioneers cannot be maintained in areas where technology is changing with each passing day and continuous improvement is needed. Well-known companies are likely to lose their dominant position if they cannot integrate into the ever-changing customer preferences or the technological development of competitors.
At present, the overall active users in digital currency's sales market are very unstable. In this natural environment, the encryption algorithm changes rapidly, and the system software that cannot be upgraded quickly is likely to fall behind.
In terms of the number of customers, Ethereum gained many active consumer groups in 20 17, and at this stage, the consumer groups have achieved 80% of the BTC business scale.
On the technical level, at this stage, Ethereum has rapidly upgraded the protocol (faster than BTC), from labor confirmation (PoW) to benefit confirmation (PoS).
Goldman Sachs shows that the advantage of PoS is that it can further improve the power and energy efficiency of the system software, and reward the selection according to the total number of ethereum owned by the selection (rather than their ability to solve the work), which will complete the power-burning competition of the selection award.
At present, BTC's energy consumption has reached the level of Spain. If the price of Bitcoin rises to $65,438+000,000, its energy consumption is likely to double. From the perspective of environment, society and governance, this makes BTC project investment very interesting.
In terms of security and reliability, Goldman Sachs shows that all digital currency is still in its infancy, with rapid technological changes and unstable customers.
Although there are security risks in the whole authentication process of Ethernet PoS protocol, BTC is not 100% secure. At present, the four mining softwares of BTC control nearly 60% of BTC supply, and the high market concentration may lead to the existence of false transactions in Taobao.
Ethereum has also encountered many risks, and its dominance cannot be guaranteed. For example, if the upgrade of Ethereum 2.0 is delayed, developers are likely to choose to migrate to the market competition service platform.
The sales market will fluctuate again until the real practical value appears.
Goldman Sachs emphasized that the important difference between the current digital currency sales market and the 20 17-20 18 bull market lies in the existence of investors: this is a sign that the financial system is gradually embracing digital currency's attributes.
The uncertainty of BTC is rising, and the price has dropped by 30% in the past week.
In addition, the participation of investors has slowed down recently (the injection of assets into digital currency ETF has decreased), and there are various alternative currencies, suggesting that the sales market has once again become the core of investors.
Goldman Sachs feels that this shift from institutions to shareholders is increasing the probability of a sharp decline in the sales market. At this stage, the high uncertainty of the sales market will be maintained until digital currency has the main potential for the development of the real economy independent of prices. This will usher in a new era in digital currency.
# Bitcoin [Hyper] # # digital currency #