A recent report released by Bank of America (BofA) claimed a global explosion in the number of industries that based their actions on cryptocurrencies. The comprehensive information presented an analysis of the blossoming phase of blockchain technology, which is currently happening and supporting the crypto-space. The report further emphasized that BofA is willing to delve more into the crypto-space and explore beyond bitcoin, the most popular cryptocurrency in the world.

The report acknowledges the importance of bitcoin and claims that the major investors around the world spent $17 billion in the Decentralised Finance (DeFi) universe. The significance of DeFi systems is that they offer a decentralized and autonomous option for financial services that are different than the regulation by banks, states, or international administrations.

The most highlighted prediction in BofA’s report is that use-cases of blockchain systems could increase and improve many industries in the coming days. Because blockchain technology does not require a central authority to control the transactions, users are granted autonomy over their actions and assets.

Alkesh Shah, the leader of the Cryptocurrency Research Team at Bank of America, states:

“Bitcoin is important, but the digital asset ecosystem is so much more. Our research aims to explore the implications across industries, including finance, technology, supply chains, social media, and gaming […] Shortly, you may use blockchain technology to unlock your phone; buy a stock, house, or fraction of a Ferrari; receive a dividend; borrow, loan or save money; or even pay for gas or pizza.”

The sector has a steady growth. The research supports this claim, showing that the number of people who have used cryptocurrencies in recent years is nearly 221 million.

Acquisitions and mergers in the crypto universe have also witnessed a significant increase: while the value was $940 million in 2020, it reached $4.2 billion in 2021.

The hype created by the non-fungible tokens (NFTs) has also been addressed in a research report by Bank of America. NFTs are virtual assets representing a large variety of items: a music video, an artwork, an in-game item, or another unique item. The NFTs are mentioned in the report because they are treated as collectibles purchased in cryptocurrencies. However, however popular these new non-fungible tokens are today, the information remains cautious. It warns investors to analyze all the potential financial risks of making significant investments in NFTs thoroughly.

The report by Bank of America was released right after the Chairperson of the US Federal Reserve, Jerome Powell, stated that the central bank has no plans to ban the cryptocurrency sector. On the contrary, the recent report by FullyCrypto claims that the US Federal Reserve aims to create an official virtual dollar.