- Wells Fargo has Advised Investors that It’s Not Too Late to Invest Their Money in crypto
- The bank compares the adoption rate of crypto with the Internet in the mid-to-late 90s
- However, the bank currently refuses to invest via crypto exchanges, mutual funds and ETFs
The American financial services company Wells Fargo said earlier this week in a Communication to investors that it is early, but not too early, to get into cryptocurrencies.
Over the past twelve months, crypto assets have seen everything – from the highest peaks to extreme volatility. During the crypto summer, several coins flourished, and the market capitalization of the sector increased from just under $ 1 trillion to $ 3 trillion. This rapid industry growth has been primarily attributed to the increasing number of users joining the sector. Nevertheless, FOMO is rising among those who have not yet booked a place, even if more and more are entering the industry.
Parallelism with the beginnings of the Internet
Wells Fargo told investors that while there is a view “too late to invest” I understand, but it is still conceivable to join the crypto bandwagon. The banking institution substantiated its argument by explaining that the acceptance rates indicate that the industry in the “early, but not too early” The phase is located.
The bank has also shown that the introduction of new technologies is usually rather slow in the early years. For context, the report showed that the growth of adoption has foreshadowed a path like the onboarding of users by the Internet in the 90s. Therefore, Wells Fargo concluded that crypto is approaching a tipping point of adoption, just as the Internet showed between the mid-to-late 90s.
“If this trend continues, cryptocurrencies could soon leave the early adoption phase and reach a tipping point of hyperadoption, similar to other technologies. There’s a point where adoption rates start to go up and don’t look back anymore,“ added Wells Fargo.
In comparison, it was said that the adoption of crypto in this period could even be ahead of that of the Internet.
Cryptocurrencies are good assets
The bank also said that cryptocurrencies are currently considered feasible investments, although these assets are still at an initial stage in terms of development. However, it warned users not to invest directly through crypto exchanges, mutual funds or ETFs. Instead, it recommends the use of “professionally managed private placements”.
Wells Fargo also noted that the crypto sector is still „a relatively young investment sector“ and that its uniqueness lies in the complexity of the underlying technology, which has made it difficult to attract investors or attract research reports.
The bank insisted that all predictions based on historical prices are inaccurate, since the prices of these tokens have increased practically from zero.