Wells Fargo: Cryptocurrency Has Entered ‘Hyper-Adoption Phase’
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In February, Wells Fargo’s investment institute published a special report titled “Understanding Cryptocurrency.” It tries to determine whether it is “too early or too late” for investors to begin investing in cryptocurrencies.
Wells Fargo team believes that:
“The cryptocurrencies we believe are a viable investment today, even though they are still in the early stages of their investment evolution.”
They recommend investing in privately managed investment properties, as the investment landscape is still maturing.
The research team continued: “We see cryptocurrencies relatively early, but not too late, so we have emphasized investor education. As a result, global cryptocurrency adoption rates have rapidly risen from a low base, which is the thrust of our view.”
According to them, Cryptocurrencies have been adopting a trend similar to other advanced technologies, such as the internet. Therefore, for investors trying to determine whether we are late or early to cryptocurrency investing, looking at technology investing in the mid-to-late 1990s may seem reasonable.
In the early 2000s, the internet experienced a phase of hyper-adoption. The cryptocurrency market appears to be at a similar stage today. They are optimistic that greater regulatory clarity in 2022 will lead to better investment options.
However, the firm recommended: “Cryptocurrency investment options today are still maturing, so we recommend patience.” For now, they suggest only professionally managed private placements.
The Wells Fargo group started offering crypto investments to its clients in August 2021. The firm also wants to launch a bitcoin fund in the United States.