Financial services firm Wells Fargo says that cryptocurrencies are viable investments that have entered the “hyper-adoption” phase. “Cryptocurrencies have been following an adoption pattern similar to other new advanced technologies, such as the internet,” the firm’s global investment team detailed.
Crypto in Hyper-Adoption Phase, Says Wells Fargo
Wells Fargo’s investment institute published a special report titled “Understanding Cryptocurrency” this week. The report attempts to answer whether it is “too early or too late” to invest in cryptocurrencies.
This is what the Wells Fargo team said:
Although cryptocurrencies remain at the very early stages of investment development, we believe they are still viable investments.
They added: “We recommend professionally managed private placements for now, as the investment landscape is still maturing.”
The research team continued: “We see cryptocurrencies in the ‘early, but not too early’ investment stage, which is why we have emphasized investor education. The thrust of our view comes from global cryptocurrency adoption rates, which have quickly accelerated from a low base.” They noted:
It is similar to the adoption patterns of internet-based advanced technologies like cryptocurrencies.
The Wells Fargo analysts reiterated, “For today’s investor trying to figure out if we are early or late to cryptocurrency investing, looking at technology investing in the mid-to-late 1990s seems reasonable.” They added:
The internet was in a phase of hyper-adoption at that point and has not looked back since. Cryptocurrencies appear to be at a similar stage today … We are hopeful that greater regulatory clarity in 2022 brings higher quality investment options.
Nonetheless, the firm recommended: “Cryptocurrency investment options today, however, are still maturing and we advise patience. For now, we suggest the consideration of only professionally managed private placements.”
Wells Fargo began offering cryptocurrency investments to its clients last August. A bitcoin fund has been filed by Wells Fargo with the U.S Securities and Exchange Commission (SEC).
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