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Bank of America Report: “Cryptocurrencies can’t be ignored”

According to a research report by Bank of America (BofA), industries backed and based on cryptocurrencies have experienced massive global growth, making the area “too large to ignore.”

The research, titled Digital Assets Primer: Only the First Inning, compiles a complete examination of the current state of blockchain technology, which supports the crypto-space. Furthermore, according to the article, BofA is open to delving deeper into the crypto-space and looking beyond Bitcoin, the world’s most valuable cryptocurrency.

Bank of America Research Report: "Cryptocurrencies can't be ignored''

Image Source: NASDAQ

While admitting the importance of Bitcoin, the study states that large institutional investors spent $17 billion (approximately 1,27,055 crores) into the Decentralised Finance (DeFi) ecosystem. DeFi systems are designed to provide a self-contained and decentralized alternative to financial services that are currently regulated by banks and national or international governments.

BofA has placed a special emphasis on a projection that blockchain technology’s use-cases will revolutionize and power several industries in the near future. Blockchain does away with the need for a central authority to oversee financial transactions, giving consumers control over their assets and transactions.

Bitcoin is significant, but the digital asset ecosystem is enormous.” “We want to look at the consequences across businesses including finance, technology, supply chains, social media, and gaming,” Alkesh Shah said. “In the not-too-distant future, blockchain technology may be used to unlock your phone, buy a stock, house, or fraction of a Ferrari, receive a dividend, borrow, loan, or store money, or even pay for petrol or pizza.”

According to the study, roughly 221 million people have exchanged cryptocurrencies in recent months, reflecting the sector’s continuing rise. In the crypto market, mergers and acquisitions have increased from $940 million (approximately Rs. 7,025 crores) in 2020 to $4.2 billion (about Rs. 31,390 crores) in 2021.

The study also looked at the non-fungible tokens (NFTs) craze, which are dig#Crptoital assets that represent art, music, in-game goods, and films, among other unique objects that can be acquired as a collectible using cryptocurrency. The research, on the other hand, cautioned NFT investors to thoroughly investigate all of the financial risks associated with investing in highly valued NFT components.

BofA released this report just days after US Federal Reserve Chair Jerome Powell stated that the central bank has no plans to ban the crypto sector.

According to a report by FullyCrypto, the US Federal Reserve is also considering launching an official digital currency. Oceania, South and Central Asia, as well as Central, Northern, and Western Europe, have seen significant expansion in the cryptocurrency sector.

Studies by industry research firm Chainalysis, the cryptocurrency market rose by 706 percent between July 2020 and June 2021, reaching a worth of $572.5 billion (approximately Rs. 42,62,844 crores) in two regions – Central and Southern Asia (CSAA) and Oceania (CSAO).

With over $1 trillion (approximately Rs. 74,46,016) in transactions during the same period, Central, Northern, and Western Europe have become the world’s largest crypto economy.

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