Wait, A Bank Actually Thinks Bitcoin Will Reach $175k Soon? Yes, And This Is Why

Wait, A Bank Actually Thinks Bitcoin Will Reach $175k Soon? Yes, And This Is Why


It’s not often that we hear banks saying good things about crypto. I’d even go so far to say that pigs have more chance of flying than positive crypto views on a traditional branch of the finance world.

But alas, I find myself here actually sharing good things a bank has said about crypto (crazy world, right?).

So, what was this good news? Well, British based bank’s Standard Chartered analysts shared some rather bullish views on the future of both Bitcoin and Ethereum. Not only do they believe these assets will keep growing, they think that BTC could reach the mark of $175k, and they value Ethereum up to $35k.

Now that your mouth is slowly leaving the floor after seeing positive news from a financial institution, let’s explore these forecasts in more detail.

These predictions were made as part of a wider set of data that Standard Chartered published exclusively covering BTC and ETH. It's even called the Ethereum Investor Guide, so no points for guessing their favourite of the two.

Aside from being a somewhat love letter to Ethereum, the report lists a variety of insights and opinions on why their analysts believe it’s really going places.

At a glance, here’s what how the team summed up their bullish outlook on ETH:

“The current transition to ETH 2.0 could transform ETH by increasing its functionality and scalability and reducing environmental concerns (due to no more ‘mining’), although it could raise more complex security issues. Timelines for ETH 2.0 rollout could slip, but in the near term, decreasing net supply — as ETH is staked for ETH 2.0 — should provide a price cushion.

Given these factors, we think ETH is a better buy over the medium term than BTC.”

Fascinating - Ethereum is looking very healthy then.

 

The main factors that provide long term excitement for Ethereum

Identified as a larger software platform by SC, ETH can provide and has a number of use cases such as:

  1. Smart contracts
  2. Decentralised Autonomous Organisations (DAO’s)
  3. Non-Fungible Tokens (NFT’s)
  4. StableCoins
  5. Decentralised Finances Products (De-Fi)
  6. Initial Coin Offerings (ICO’s)

Plus the move from proof of work (POW) to a proof of stake (POS) protocol, has got them all giddy about environmental and security benefits that it’ll bring. Also noted was the scalability of the protocol vs Bitcoin, and the soon to be addition of sharding which in as SC’s analysts describe as “mini  blockchains with their own transactions processed by validators in parallel with each, which provides scalability to the system that is not present with ETH 1.0.”

Of course, much more was revealed by the team in their deep dive in this 17 page research report which you can check out for yourself here. If you’re hot on ETH, then it could be well worth a read.


More from me

How Crypto Went Mainstream In Less Than Two Years

Fractionalised NFT’s explained: Can’t afford a whole NFT? Just buy one part instead


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Important 🚨

I’m not a financial advisor, a psychologist or any from of accredited professional. As such, this is not financial advice and I’m not qualified or licensed to provide anything like this. This content is a bunch of thoughts from a fellow human for educational purposes only — that is all.

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That Blockchain Thing
That Blockchain Thing

Tech enthusiast and curious cryptonite. Sharing educational content to make sense of this digital world.


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