18.02.2022 08:43 PM
Ethereum is a much riskier investment tool than Bitcoin according to Morgan Stanley analysts who expressed their opinion about the prospects of the two biggest cryptocurrencies.
Morgan Stanley sees ETH investments as riskier ones because it expects Ethereum to weaken and lose the battle against other blockchains such as BNB Chain, Solana, Cardano.
In the latest Wealth Management report, the bank noted that putting money in Ethereum is a financial threat unlike investments in digital gold.
The competitive struggle between dominating blockchains is getting tougher. Such projects as Solana, Cardano, or BNB Chain can turn out to be stronger than Ethereum, so the latter one may suffer big losses.
Ethereum loses many points to its competitors: its scalability is poor, its blockchain is outdated, and the service is quite costly for new users. Moreover, Ethereum is less decentralized compared to Bitcoin.
The report by Morgan Stanley also suggests that Ethereum risks losing the smart-contracts market share as other platforms such as Solana and Cardano offer more convenient and fast solutions for investors.
Exorbitant commissions in the Ethereum blockchain scare new users off working on this platform. This fact also poses a risk to future demand and ETH scalability.
As of February 18th, ETH quotes declined again to 2,800 USD. Ethereum is unlikely to attract new investors unless it issues a new proof-of-stake protocol and updates the platform to version 2.0. Moreover, it risks losing its existing users who may opt for Solana or Cardano.
Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.
If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.
Why does your IP address show your location as the USA?
Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaTrade anyway.
We are sorry for any inconvenience caused by this message.
