Wells Fargo: Global Crypto Adoption Is On The Rise And Could Reach An Explosive Growth Point In Near Future

Analysts at the multinational bank Wells Fargo believe that cryptocurrencies are waiting for a “phase of hyper-acceptance” and a significant increase in users.

In the report, banking analysts compared the current development of the cryptocurrency industry with the development of the Internet in the mid and late 90s. At that time, the World Wide Web was gaining popularity, and in a few years, it penetrated almost all inhabited corners of the Earth. And according to Wells Fargo analysts, the same future awaits cryptocurrencies:

“Crypto users are growing globally and rapidly off a low base, cryptocurrencies are near a hyper-adoption phase similar to that of the internet, during the mid to late 1990s.

We believe that cryptocurrencies are viable investments today, even though they remain in the early stages of their investment evolution.”

As for the investors, Wells Fargo advises patience and hint only that professionally managed private investments are worth making. Right now Wells Fargo does not recommend speculation in exchange rates, ETFs, trusts, and similar instruments. Analysts hope more regulatory clarity will be in 2022, helping create “better” investment opportunities.

“We recommend professionally managed privately placements for now, as the investment landscape is still maturing.”

Bank emphasizes that now investing in digital assets requires appropriate training, but the sphere itself is extremely attractive because everything points to a repeat of the history of the Internet. That is, explosive growth, large-scale development, and universal popularity:

“Leaving aside the numbers, there is no doubt that the global adoption of cryptocurrencies is on the rise and could reach an explosive growth point in the near future.”

Crypto Adoption Looks Similar To The 1990s Internet:

According to Wells Fargo, we are still “at the beginning, but not too early” in crypto; we have a history of more than a decade that proves that Bitcoin is safe, and we can also expect more adoption in the future, like the internet.

“Crypto adoption rates look to be following the path of other advanced technologies, particularly the internet. If this trend continues, crypto could soon exist in the early adoption case and enter an inflection point of hyper-adoption, similar to other technologies, as shown in the graph. In the graph, there is a point where the adoption rate begins to rise and does not look back for the internet that was the mid to late 1990s. After a slow start in the 1990s, internet usage surged from 77 Million in 1996 to 412 million in 2000. By 2010 worldwide internet usage has grown to 1.98  billion, and today it sits at 4.9B.”

What to Do:

The bank highlights that investors need to be patient because most of the opportunities, according to the bank, lie in front of investors and not behind them.

Investors need to be prudent because adoption rates are rising, but investment options are a bit behind and still maturing.

Investors need to remain careful because the Bank warns that many popular cryptocurrencies may disappear tomorrow. This has already happened in two primary Bitcoin cycles and could be happening again now.

Compared to the internet, the text warns that the most accessed sites in 1996 and 1997 are no longer relevant today. In addition, this period was marked by a big bubble that broke several companies and, of course, investors.

In other words, it isn’t easy to know which cryptocurrency other than Bitcoin (BTC) will remain alive. So Wells Fargo notes that while there are opportunities, you need to monitor your portfolio at all times.

Large banks in the United States and worldwide are increasingly paying attention to the market, and the new report shows interest in the technology adoption curve.