Updated 06 Oct, 2021

Bank of America Praises Bitcoin, Says Crypto is in First Inning

Bank of America

Key Takeaways:

  • Bank of America released a key report that says bitcoin is now too large to ignore
  • Cryptocurrency, says BofA, could become an entirely new asset class

Bank of America Says Bitcoin Can’t be Ignored

A supportive note from Bank of America became the latest positive development to arrive this month. October, or as traders now call it, Uptober, is so far delivering on the expectations. Moreover, just as bitcoin passed $51,000, Bank of America’s latest analysis on bitcoin is another sign that mainstream adoption grows.

“With a $2tn market value and 200mn users, the digital asset universe is too large to ignore,” the report says right off the bat. “We believe crypto-based digital assets could form an entirely new asset class. Bitcoin is important with a market value of $900bn, but the digital asset ecosystem is so much more.”

Analysts at Bank of America Praise Blockchain

Bank of America is calling blockchain “the most exciting new market in years.” That said, the investment firm also describes how people can use blockchain in their day-to-day lives.

“In the near future, you may use blockchain technology to unlock your phone,” analysts at BofA say. They continue by adding you could use the technology to “buy a stock, house or fraction of a Ferrari.” Moreover, you could go on blockchain to “receive a dividend; borrow, loan or save money; or even pay for gas or pizza.”

Bitcoin Mainstream Adoption Expands

Bank of America is a top investment bank on Wall Street. Its positive outlook for crypto is another step from traditional finance toward embracing cryptocurrencies. On that note, the bank cites over $17bn worth of venture capital has been invested in crypto projects in the first half of 2021. In comparison, a total of $5.5bn of venture capital have been invested in crypto throughout 2020.

Upbeat Expectations Ahead for Crypto

The report from analysts at Bank of America is the first of its kind. Furthermore, “Digital Assets Primer: Only the first inning,” as it’s called, marks the start of broader digital asset coverage. In other words, Bank of America’s Global Research team will be covering digital assets and their developments from now on.