The second largest bank in the United States, Bank of America, has been quite ambivalent about the crypto sphere in the past. The organization even called Bitcoin «slow and impractical» in March this year.
However, BoA researchers said the day before that the blockchain-based market «is the most exciting area in the past few years.» We share the details of the situation.
Note that representatives of Bank of America often comment on what is happening in the cryptocurrency niche. In particular, in August 2021, bank experts assessed the idea of recognizing BTC as an official means of payment in El Salvador. Moreover, their comments were positive.
As noted by bankers , the first cryptocurrency will help citizens who are outside the country save on fees when sending money to their families. Accordingly, the savings will be used to pay for basic needs by type of goods and products. Well, this will have a good effect on the GDP of the state, which will receive an impetus against the background of an increase in free money in the economy.
What bankers say about Bitcoin
Recently published research, Digital Asset Primer, covers almost every popular trend in the crypto industry, including stablecoins, decentralized finance, and even NFT tokens. In the publication, BoA experts noted that the cryptocurrency industry has «grown too large» to be ignored. At the same time, cryptocurrencies are already beginning to «form a new asset class.»
Special attention of researchers is paid to Ethereum as a platform for decentralized finance , NFT and smart contracts . In fact, cryptocurrency is now the basis for financial innovation.
Here is the point of view of the experts, in which they share their attitude to what is happening in the world of finance. The cue is from Decrypt .
In the near future, you will be using blockchain technology to unlock your phone, buy shares, a house or part of a Ferrari, receive dividends, loans, open deposits, and more.
Accordingly, analysts predict massive popularization of blockchain technology. And since cryptocurrencies are the most common use case, this will also apply to them.
In the first half of 2021 alone, the crypto industry received over $ 17 billion in investments from major market players. For comparison: for the entire 2020, this amount does not exceed $ 5.5 billion. In general, this year was primarily marked by large investments in Bitcoin from such giants as Tesla and MicroStrategy. However, there were other giants here as well.
According to the Woobull platform, the volume of bitcoins at the disposal of public companies has surpassed the 200,000 mark. At the same time, the massive stage of investing in BTC by large market players essentially began in August 2020, when MicroStrategy acquired bitcoins for a quarter of a billion dollars. Since then, the number of BTC on the company’s balance has grown to 114 thousand coins.
However, Bank of America also speculates that sky-high NFT prices could cause problems. Here is a quote from analysts.
Simple images such as black backgrounds with a few words of text make us worry about the increased risks in this segment that need to be fully appreciated before NFTs can achieve real adoption.
In essence, in this way, analysts are hinting that the sphere of unique NFT tokens is in a bubble. A similar point of view was voiced the day before by representatives of the Chinese government.
As you can see, even banking giants are gradually realizing and accepting all those innovations that the crypto market brings. Against the background of such events, such as the complete legalization of Bitcoin in El Salvador, the image of cryptocurrencies is growing almost every year all over the world. In such conditions, a new wave of a bullish trend in the industry may be the largest in its history – at least such a scenario is predicted by analysts for 2021.