Standard Chartered Bank Prefers ETH Over BTC, Gives Up To $35,000 Price Prediction

念银思唐

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2021-09-07 22:12 (UTC+8)

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Ethereum is more of a "financial market," while Bitcoin is more of a "currency," the report said.

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Ethereum is more of a "financial market," while Bitcoin is more of a "currency," the report said.

This article comes fromThe Block, original author: Yogita Khatri

Odaily Translator | Nian Yin Si Tang

Summary:

This article comes from

, original author: Yogita Khatri

Odaily Translator | Nian Yin Si Tang

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Summary:

- The latest report from British banking giant Standard Chartered shows that it is more bullish on Ethereum than Bitcoin.

- But the report also pointed out that Ethereum has greater risks.

British banking giant Standard Chartered released its first report on cryptocurrencies on Tuesday, emphasizing a bullish view on Bitcoin (BTC) and Ethereum (ETH), but a more bullish stance on the latter .

According to Standard Chartered's global research team led by Geoffrey Kendrick, ethereum is more like a "financial market" where transactions such as loans, insurance and swaps can take place. Bitcoin, on the other hand, is more akin to a "currency," the team said. As a result, Ethereum is more widely used than Bitcoin, and Standard Chartered believes that over time, Ethereum's total market capitalization will catch up to Bitcoin.

Longer term, the bank values bitcoin in a range of $50,000 to $175,000 and ethereum in a range of $26,000 to $35,000. But for that to happen, bitcoin first needs to be trading at $175,000, the team said.

At press time, Bitcoin is currently trading at around $51,250 and Ethereum is trading at around $3,750, according to The Block’s data dashboard. This means that Standard Chartered expects Bitcoin prices to increase 3 times from current levels, and Ethereum prices to increase 10 times from current levels.

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Money vs. Financial Markets

Since Standard Chartered sees bitcoin more as a currency, it compares bitcoin to credit card market capitalization relative to potential transactions in the non-bank sector to arrive at its valuation. For Ethereum, on the other hand, Standard Chartered compared the value of global banks with the value of global credit card companies to determine its value relative to Bitcoin.