The cryptocurrency’s growing applications make it less susceptible to the interest rates
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Bitcoin may gobble up most of the headlines, but America’s biggest bank says Ethereum, the world’s second-most valuable cryptocurrency, might be the better bet as interest rates start climbing.
In a recent report, analysts at JPMorgan state that Ethereum’s growing number of uses — peer-to-peer lending, NFTs, gaming, stablecoins — should help it maintain its value in a climate of rising interest rates.
Bitcoin, on the other hand, could be set for a(nother) slide.
“The rise in bond yields and the eventual normalization of monetary policy is putting downward pressure on bitcoin as a form of digital gold, the same way higher real yields have been putting downward pressure on traditional gold,” the report says.
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Ethereum may be “safer” than Bitcoin, but this is crypto we’re talking about, so volatility is part of the game. There are, however, ways to expose yourself to Ethereum without actually buying any tokens. These three look pretty interesting.
Coinbase
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As the largest cryptocurrency exchange in the U.S., Coinbase is in a prime position to benefit from a rise in Ethereum trading, earning a transaction fee on every sale or purchase.
Many cryptocurrencies sold on the exchange are powered by the Ethereum blockchain, which means a bet on Coinbase is essentially a bet on Ethereum itself. Their futures are tightly linked.
One thing…
