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Analysts at America’s second-largest bank, Bank of America, are optimistic about the future of digital assets and blockchain. They are particularly interested in the development of Ethereum, DeFi, dApps and NFT.
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Bank of America’s research division released a report titled Digital Asset Primer, which calls blockchain the “most exciting new market” emerging in recent years.
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Analysts looked at various aspects of the industry: popular cryptocurrencies, decentralized applications (dApps), decentralized finance industry (DeFi), stablecoins, and non-fungible tokens (NFTs).
Bank of America researchers noted that the digital asset industry has grown too big to ignore. They claim that besides Bitcoin in the industry, there are other areas of interest.
“We believe that cryptocurrencies can form a whole new class of asset. Bitcoin is important because it has a market cap of around $ 900 billion, but the ecosystem can offer a lot more, ”the report says.
Analysts point out that “Smart Contract” platforms, such as Ethereum, have the potential to provide a wide range of services and functionality. The report notes:
“In the near future, you will be able to use the blockchain to unlock your phone, buy a stock, a house or part of a Ferrari, receive dividends, borrow or put money aside, or even pay for it. ‘gasoline or pizza.’
According to Bank of America, investments in digital assets and blockchain companies topped $ 17 billion in the first half of 2021, compared to $ 5.5 billion for all of 2020.
The report also mentions the recent resurgence of the NFT market. DeFi and NFT are the most innovative parts of the cryptocurrency industry, analysts say, and NFT’s growth has come as a “surprise to everyone.”
Bank of America has also identified potential obstacles to the further development of the cryptocurrency industry. Analysts detail the looming threat of stronger regulation, especially in light of recent comments from U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler.
The report also details the potential legal, regulatory, technological and environmental risks for different sectors of the industry. Bank analysts believe that blockchain will provide groundbreaking innovations.
“We believe the digital asset ecosystem is just starting to grow, despite rapid growth and market capitalization gains at some of the world’s largest publicly traded companies,” the report states.
Recall that in August, the BOA published a report in which it highlighted the advantages of the Salvadoran initiative for the adoption of Bitcoin as a legal means of payment.
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I’m sure blockchain and cryptocurrencies are the future, and I want to get this idea across to everyone because the more people who believe in cryptocurrency, the sooner the future will come.
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DISCLAIMER
The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.-
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