The central bank of the United States Corporation (BoA) has released a research report that presents an optimistic outlook for the long-term prospects of cryptocurrencies.
The report published on October 4th by BoA subsidiary BofA Securities offers a nuanced assessment of the digital asset sector and highlights the innovations in the financial sector: decentralized main (DeFi) and unusable tokens (NFT).
The report claims that the crypto sector’s market cap of $ 2.15 trillion is “too big to ignore” and stresses that the digital asset ecosystem is now “much” more than just bitcoin.
The report describes the sector as “operating system-like tokens, decentralized applications (DApps) with no middlemen, stablecoins linked to fiat currencies, digital bank currencies, central bank (CBDC) as a substitute for national currencies, and non-fungible tokens (NFTs)”) that make the connection between YouTubers and fans, “added:
“For us, digital assets are not about payments. You speak of a new computer paradigm – a programmable computer that is accessible anywhere and for everyone and that is owned by millions of people around the world. “
The BofA report notes that venture capital in the crypto and blockchain sectors increased significantly in 2021, noting that the more than $ 17 billion that went into the industry in the first half of this year invested more than tripled throughout 2020.
The report also highlights the recent surge in crypto adoption, estimating that by June 2021, 221 million users worldwide had traded crypto or used blockchain apps – compared to 66 million in May 2020.
“Applications based on this new software architecture seem to evolve faster than previous technologies. […] Anyone on the network can set up a process (application or project) that provides consistency and trust, ”the report says.
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Looking at NFTs, the BoA notes that the explosive growth of the sector has surprised even seasoned crypto users, noting that the OpenSea market generated over $ 2.5 billion in the first half of early 2021.
However, the report warns of volatility in the emerging NFT sector, saying that “the risks are higher in this segment”. […] must be fully understood before the NFT can gain real acceptance. ”