Crypto investors are not too late to venture into the market, and despite the market exploding in recent months, it is still nearing hyper-adoption, Wells Fargo said in a report Monday.
The report titled “Cryptocurrencies – Too soon or too late?” by Wells Fargo’s Investment Institute said it was “not too late to invest” in cryptocurrency, given the space is “relatively young” in comparison to other asset classes.
The Wells Fargo Investment Institute is Wells Fargo Wealth and Investment Management’s (WIM) research arm. The WIM offers financial products and services through Wells Fargo & Company’s numerous banks and brokerage affiliates.
The report outlined the potential for cryptocurrencies to serve as an investment opportunity comparable to the early days of the internet. It said crypto technology is taking a similar path to adoption that the internet took in the early to mid-1990s, when “consumers still needed time to figure out what the technology is, what it can do and how it can benefit them.” Nonetheless, similar to the internet, the increasing number of cryptocurrency users indicates that “the world is beginning to embrace the technology — and quickly.”
The report stated that if the current trend of crypto adoption continued, cryptocurrencies could soon enter an inflection point of hyper-adoption, similar to other technologies.
The Wells Fargo team urged prospective cryptocurrency users to exercise patience and engage in private placements, as those currencies are a little behind other big players and are still maturing.
The report said that regulatory roadblocks and legislative barriers must be removed in order to increase adoption, adding that the situation was gradually shifting to “solidify cryptocurrencies as investment assets.” This is despite the fact that central banks across the world are taking a stance against the adoption of cryptocurrencies.
If regulatory roadblocks are removed, “higher-quality investment possibilities” may soon emerge for all investors.
As per a survey by Crypto.com, the global cryptocurrency user base has more than doubled from 100 million in January 2021 to 221 million in June.
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