Bank of America released a report looking at the current state and prospects for the cryptocurrency industry, which is now “too big to ignore.”
The second largest bank holding company in the United States by assets, Bank of America, BofA, published his report “Digital Assets Primer: Only the first inning”, coordinated by Alkesh Shah, director of Global Strategy for Cryptocurrencies and Digital Assets, which provides an in-depth analysis of the current state of the industry Blockchain from cryptocurrencies to DeFi and NFT.
The report says that the cryptocurrency and decentralized financial services industries have grown to the point of being “dtoo big to ignore ”.
The BofA researchers point out that nearly 221 million users have exchanged cryptocurrencies or used a DeFi service, with constant growth. Similarly, the increased participation of institutional investors is a clear indication that cryptocurrencies are much more than a passing phenomenon driven by retailers. Likewise, they highlight that the crypto market exceeds USD $ 2 trillion (2 million million dollars).
In addition, Bank of America highlights that during the first half of 2021, the DeFi ecosystem received close to USD $ 17 billion in financing from institutional investors; this contrasts with the $ 5.5 billion recorded during 2020. Similarly, mergers and acquisitions in the crypto space increased from $ 940 million in 2020 to $ 4.2 billion in 2021.
In a press release, Alkesh Shah stated that cryptocurrencies are more than Bitcoin
“Bitcoin is important, but the digital asset ecosystem is so much more. Our research aims to explore the implications across industries, including finance, technology, supply chains, social media, and gaming. ”
The power of Blockchain and NFT
The team also claims that the way we interact with the world could change radically with the advent of technologies. Blockchain:
“In the near future, you can use blockchain technology to unlock your phone; buy a share, a house or a fraction of a Ferrari; receive a dividend; borrow, lend, or save money; or even pay for gas or pizza “
Bank of America He also highlighted that the growth of NFTs was a surprise to all. The researchers emphasized their fear that large valuations of some NFT pieces, such as fractional artworks or crypto gaming NFTs could be a bubble affecting many investors who are unaware of the risks they are exposed to.
The bank’s current stance, in this report, stands in stark contrast to previous reports. In March of this year Bank of America described to Bitcoin as volatile, slow, impractical and of little use as a store of value. In a report that month, it claimed that the increase in Bitcoin at $ 60,000 was essentially driven by speculation and not by the inherent advantages of cryptocurrency
Subsequently, in July 2021, he took the matter of crypto more seriously and created a research team dedicated especially to cryptocurrencies. At the time, BoA Global Research Director Candance Browning highlighted that cryptocurrencies and digital assets represent one of the ecosystems “Fastest growing emerging”. He also indicated:
We are uniquely positioned to provide thought leadership due to our strong industry research analysis, the market leading global payments platform, and our Blockchain expertise.
In that month it was revealed that the team that would investigate technologies linked to digital currencies would be led by Alkesh Shah, who previously led the BoA’s team of global technology specialists. He is precisely the head of the report that is mentioned today.
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