According to new research from Wells Fargo, people who think it’s too late to invest in cryptocurrencies may be wrong.
The bank’s global investment strategy team said in a note released Monday that cryptocurrencies could reach a point of adoption, just as the internet did in the mid to late 1990s. This means that the bank expects a significant expansion in crypto adoption rate.
According to Crypto.com data, only 221 million people in the world currently use cryptocurrencies. This corresponds to about 3% of the world’s population.
Wells Fargo stated that he accepted the “too late to invest” argument, but disagreed with it. Instead, the bank said it placed itself in the “early but not too soon” group based on increasing global crypto adoption rates.
“If this trend continues, cryptocurrencies may soon exit the early adoption phase and enter the hyper-adoption milestone, similar to other technologies,” Wells Fargo said in its report.
“There is a point where adoption rates start to increase and don’t look back […] Exact numbers aside, there is no doubt that global cryptocurrency adoption is on the rise and may soon reach an extreme inflection point.”
Wells Fargo said that although cryptocurrencies are in new stages of investment evolution, he believes they are making viable investments today. However, the bank noted that “regulatory hurdles” could be a major hurdle as it is the number one reason why high-net-worth investors do not want to invest in crypto.
Also, the team said that the past performance of cryptocurrencies may not be a good indicator because prices have essentially increased from zero. Wells Fargo cited Bitcoin as an example in this regard, noting that the first real-world transaction using the coin took place 16 months after its launch, when it was worth about $0.004. Bitcoin was launched in January 2009, but did not exceed $1 until February 2011.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.