“Crypto is a trend that has only just begun,” said Bank of America.
Bank of America Corporation (BoA) has published a research report offering optimistic long-term prospects for cryptocurrencies.
The report, released on October 4 by BoA subsidiary BofA Securities, offers a differentiated assessment of the digital asset sector that highlights innovations in the decentralized finance (DeFi) and invariant tokens (NFT) sectors.
The report says the cryptocurrency market capitalization of $ 2.15 trillion is “too big to ignore,” stressing that the digital asset ecosystem has evolved to include “much more” than just Bitcoin.
The report characterises the sector as including “tokens that act like operating systems, decentralised applications (DApps) without intermediaries, stable coins linked to fiat currencies, central bank digital currencies (CBDC) replacing national currencies, and non-convertible tokens (NFT) enabling links between creators and fans. “, adding:
“For us, digital assets are not about payments per se. They are talking about a new computer paradigm – a programmable computer that is available anywhere and for everyone and owned by millions of people around the world. “
The BofA report noted that venture capital in the crypto and blockchain sector increased dramatically in 2021, noting that over $ 17 billion invested in the industry in the first half of this year is more than three times the $ 5.5 billion invested in the sector over the course of the whole year.
The report also highlighted the recent soaring rates of cryptocurrency adoption, estimating that 222 million users worldwide were trading cryptocurrencies or using blockchain applications in June 202. – compared to 66 million in May 2020.
“Applications built on this new software architecture seem to develop faster than previous technologies. […] Anyone in the network can establish a process (application or project) that will ensure consistency and trust, ”the report says.
Looking at the NFT, the BoA concludes that the sector’s dynamic growth surprised even experienced cryptocurrency users, highlighting that the OpenSea market generated over $ 2.5 billion in the first half of 2021.
However, the report warned of the volatility associated with the emerging NFT sector, stating that “the increased risk in this segment […] must be fully understood before the NFT can reach true adoption.”
06-10-2021, Mr Advice TEAM