Morgan Stanley thinks Bitcoin is better than Ethereum
Morgan Stanley thinks Bitcoin is better than Ethereum

Morgan Stanley thinks Bitcoin is better than Ethereum

By Vincenzo Cacioppoli - 18 Feb 2022

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In a recently published report, investment bank Morgan Stanley has carried out an analysis of the two main cryptocurrencies, concluding that it is cheaper to invest in Bitcoin than Ethereum.

Morgan Stanley prefers Bitcoin

After criticizing Bitcoin and cryptocurrencies, it seems that the bank has radically changed its mind on Bitcoin, considering it an established asset destined to last. It did however criticize Ethereum as less decentralized than Bitcoin and increasingly struggling in the face of the advance of dangerous competitors, such as Avalanche, Cardano and Solana.

“High transaction fees create scalability issues and threaten user demand”.

The report reads, where analysts add that high costs still make the Ethereum platform too expensive for small-value transactions.

Morgan Stanley Bitcoin
Morgan Stanley glorifies Bitcoin

Bitcoin less volatile and more decentralized

According to Morgan Stanley‘s analysts, despite Ethereum’s greater gains in 2021 compared to Bitcoin, the latter is definitely to be preferred because it is less volatile than the former. According to the report, since 2018 BTC has been 30% less volatile than Ethereum.

Bitcoin’s network requires fewer transactions than Ethereum‘s and this makes it more scalable and cheaper compared to its rival, and most importantly its dominance is not yet in danger as opposed to Ethereum‘s, which already declined in 2021 compared to new dangerous competing blockchains that are more scalable and cheaper.

Bitcoin is preferred by Morgan Stanley for its greater decentralization compared to Ethereum, considering that the top 100 ETH addresses hold 39% of the currency, compared to 14% for the top 100 BTC addresses.

ETH dominance declining

While the dominance of the NFT and DeFi market is still firmly in the hands of the Ethereum blockchain, which still holds around 60% of the market, the trend speaks of its descent in favour of other more convenient blockchains, such as Solana, Cardano and Avalanche.

According to the investment bank’s analysts, this trend will continue and consolidate in 2022, putting the primacy of ETH in terms of developers and dApps, at great risk. In addition, the Morgan Stanley report notes that new regulations likely to come into force for DeFi and NFT market participants could lead to a reduction in demand for transactions on the network.


Vincenzo Cacioppoli

Vincenzo was born in Genova but lived most of his life in Milan. He has a degree in political science. He is a journalist, blogger, writer, and marketing and digital advertising expert. After a long experience in traditional marketing, he started working with the web and digital advertising in 2011, creating a company called Le enfants. Passionate about the web and innovation, in 2018 he started exploring the topics related to blockchain technology and cryptocurrencies. Independent cryptocurrency trader since March 2018, he now collaborates with companies in the sector as a content marketing specialist. In his blog., he has long been primarily focused on blockchain, which he considers to be the greatest technological innovation after the Internet. His first book about blockchain and fintech is scheduled for release in November.

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