The investment in Ethereum has a greater risk than Bitcoin: Morgan Stanley

over time blockchains such as Cardano, Solana and Polkadot have become so far as "they are branded as" Ethereum killer ". They have far more attractive properties in terms of scalability and network gas fees. It is expected that the impending introduction of the consensus layer and the Sharing capability of Ethereum will largely solve its problems.

JPMorgan is another large bank that has expressed concerns about the scalability of Ethereum. In his opinion, the network may not grow quickly enough to ward off the competition. Ethereum developers, however, took off the comment with a shrug and called it a "lazy criticism".

Morgan Stanley: Bitcoin remains superior

and when comparing the coin with Bitcoin (BTC), Morgan Stanley says that Ethereum is confronted with more competitive threats, scalability problems and complexity challenges as the former. Ether's competition on the Smart Contract market replaces Bitcoin's competition on the market for value preservatives, banknotes.

In addition, Morgan Stanley says that Ethereum is less decentralized than the APEX coin, since the top 100 addresses hold 39 percent of ETH, compared to 14 percent in Btc.

In addition, the bank believes that ether is more volatile than bitcoin. The investment in Ethereum is also more risky than BTC, since fewer transactions per user are required to use the latter. This makes Bitcoin synonymous for "a decentralized savings account". Ether's demand is closely associated with his transactions, which means that his scaling restrictions press his demand to a lower level than that of Bitcoin.

The advantages and disadvantages

Morgan Stanley warns that both the defi and the NFT sector will be exposed to an increased official supervision in the future. This could affect the demand for transactions in the Ethereum network. Other market analysts agreed that a stricter supervision of the crypto industry would be imposed in 2022. Focus will probably be the booming defic and NFT sectors, which have great contradictions to existing laws.

but even in view of these problems, Morgan Stanley points out what he believes is the advantages of the network. The bank says that the market potential of Ethereum exceeds that of Bitcoin due to its transaction-based token-burning (deflationary) system. In addition, the bank predicts that the network's performance after migration could significantly improve the proof-of-stake algorithm.

at the reporting time, ETH changed owners at $ 2,940 after it had fallen by 4.1 percent last day. Analysts indicate the increasing wedge pattern on the 12-hour chart and say that this signals an increased risk of withdrawal.