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Bank of America: Bitcoin is Important, The Crypto Industry is Too Large To Ignore

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“Bank of America released a report analyzing the current state and perspectives of the cryptocurrency industry, which is now “too large to ignore”.

Bank of America has published its report “Digital Assets Primer: Only the first inning,” led by Alkesh Shah, head of Global Cryptocurrency and Digital Asset Strategy, providing an in-depth analysis of the current state of the blockchain industry from cryptocurrencies to DeFi and NFTs.

The report says that the industries of cryptocurrencies and decentralized finance services have grown to the point of being “too large to ignore.”

BofA’s researchers note that nearly 221 million users have exchanged cryptocurrencies or used a DeFi service, with steady growth. Similarly, the increased participation of institutional investors is a clear indication that cryptocurrencies are much more than a passing phenomenon driven by retailers.

Bank of America is Bullish About The Crypto Space Beyond Bitcoin

Bank of America highlights that during the first half of 2021, the DeFi ecosystem received close to $17 billion in funding from institutional investors; this contrasts with the $5.5 recorded during 2020. Similarly, mergers and acquisitions in the crypto space rose from $940 million in 2020 to $4.2 billion in 2021.”

“In an official PR, Alkesh Shah maintained an agnostic stance, asserting that there is more to cryptocurrencies 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 team also asserts that the way we interact with the world could change radically with the advent of blockchain technologies:

“In the near future, you may use blockchain technology to unlock your phone; buy a stock, house or fraction of a Ferrari; receive a dividend; borrow, loan or save money; or even pay for gas or pizza,”

Bank of America also highlighted that the growth of NFTs was a surprise for everyone. Researchers emphasized their fear that the large valuations of some NFT pieces, such as fractionalized artworks or the NFTs from the crypto game Loot, could be a bubble that affects many investors who do not know the risks they are exposed to.” Cryptopotato

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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