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Ethereum is a bigger investment risk than Bitcoin says Morgan Stanley

Morgan Stanley warns Ethereum could lose ground to Binance, Solana, and Cardano.

Ethereum poses a far more significant investment risk than Bitcoin, according to a report published by Morgan Stanley Wealth Management.

The investment bank noted that Ethereum’s blockchain dominance could diminish should strong market competition emerge.

According to the report, Ethereum is prone to intense competition, scalability issues and more complex challenges than Bitcoin, and they also say that Ethereum is less decentralized than Bitcoin. 

Morgan Stanley also argues that Ethereum may lose smart contract platform market share to faster and cheaper alternatives like Solana and Cardano.

Ethereum’s “high transaction fees create scalability problems and threaten user demand,” adding that, “High costs make Ethereum too expensive for small-value transactions.”

Titled “Cryptocurrency 201: What Is Ethereum?“, the report contains a detailed overview of the blockchain’s ecosystem along with its advantages and disadvantages in comparison to Bitcoin.

Ethereum Price

The Ethereum price continues to sit in a tight range between $3277 and $2834. ETH dropped below $3000 yesterday after failing to clear $3200 resistance.


Not Investment Advice Note: Views expressed are those of the writer. The author does not own any stocks mentioned. The article is information, not advice. Share prices can rise and fall. Past returns are not a guide to the future. Please do your own research.

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