Bank of America Corporation (BoA) has published a research report that provides an optimistic view of the long-term outlook for cryptocurrencies.
A report released on Monday by BoA-affiliated BofA Securities provides a thorough assessment of the digital assets sector, highlighting the innovations taking place in the decentralized financial (DeFi) and immutable token (NFT) sectors.
The report claims that the market value of $ 2.15 trillion for cryptocurrency is “too big to ignore”, and emphasizes that the digital resource ecosystem has evolved to include “much more” than just Bitcoin (BTC).
The report describes this sector as including “tokens that act as operating systems, decentralized applications (DApps) without intermediaries, stack coins linked to fiat currencies, central bank digital currencies (CBDCs) to replace national currencies and non-fungible tokens (NFTs) such as enables communication between creators and fans, “and adds:
“For us, digital assets are not payments in themselves. They are dedicated to a new computing paradigm – a programmable computer that can be accessed anywhere, for anyone and owned by millions of people around the world. ”
The BofA report notes that venture capital in the crypto and blockchain sector increased significantly in 2021, with over $ 17 billion invested in the industry during the first half of this year, more than tripling the 5.5 billion received. billion dollars. Pump it into the sector all year round. throughout 2020.
The report also highlights the recent growth in the use of cryptocurrencies, with an estimated 221 million users globally trading crypto or using the blockchain app from June 2021 – up from 66 million in May 2020.
“Applications built on this new software architecture seem to be growing faster than previous technologies. […] Anyone online can create a process (application or project) that provides consistency and trust,” the report states.
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When we look at NFT, BoA notes that the sector’s meteoric rise has surprised older cryptocurrencies, emphasizing that the OpenSea market brought in over $ 2.5 billion in the first half of 2021.
However, the report warns of the volatility associated with the emerging NFT sector and notes that “it is necessary to fully understand the growing risks in this sector […] before NFTs can be used effectively”.