Bank of America Corporation (BoA), has published a research report that offers a bullish outlook on the long-term outlook of cryptocurrencies.
Bank of America published “Digital Assets Primer, Only the first inning,” by Alkesh Shah (Director of Global Strategy for Cryptocurrencies & Digital Assets), which offers an in-depth analysis of current trends in the blockchain industry, from cryptocurrencies to deFi, NFTs.
According to the report, the market capitalization of cryptocurrency is $2.15 trillion and is “too large to ignore,”, the digital asset ecosystem has expanded to “much more than Bitcoin.”
Bank of America points out that the DeFi ecosystem received nearly $17 billion from institutional investors during the first half of 2021. This is in contrast with the $5.5 in 2020. Mergers and acquisitions within the crypto space increased by $940 million between 2020 and $4.2 billion in 2021.
Alkesh Shah stated in an official PR that cryptocurrencies are more important than just 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.”
Blockchain technologies could also change the way we interact and communicate with the world, according to the team.
“Shortly, 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,”
According to the report, the sector is described as “tokens that act like operating systems, decentralized applications (DApps) without middlemen, stable coins pegged to fiat currencies, central bank digital currencies (CBDCs) to replace national currencies, and non-fungible tokens (NFTs) enabling connections between creators and fans,” adding:
“For us, digital assets are not about payments per se. They’re about a new computing paradigm – a programmable computer that is accessible everywhere and to anyone and owned by millions of people globally.”
BofA also noted the rise in the adoption of crypto. The report estimated that 221 million people worldwide had used a cryptocurrency app or traded in cryptocurrencies in June 2021 as compared to 66 million in May 2020.
Bank of America noted that everyone was surprised by the rise of NFTs. Researchers expressed concern that NFT pieces with high valuations, such as fractional artworks and NFTs from the crypto game Loot could create a bubble, affecting many investors who don’t know the risks.