Banking giant Wells Fargo has taken notice of how far the crypto world has come. It’s now predicting that adoption could grow tenfold in the coming years, and it believes that crypto is still very much in its early days.
Wells Fargo Thinks Crypto Is Going to Get Bigger
In a statement, Wells Fargo explained:
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. At that time, the internet hit a hyper-adoption phase and never looked back. Cryptocurrencies appear to be at a similar stage today.
Working with digital exchange Crypto.com, Wells Fargo has issued a report suggesting that there are presently more than 220 million users of crypto throughout the world. This amounts to just under three percent of the world’s population, so while the number may seem big at first glance, we see just how much more room there is for the digital currency world to expand.
The report explains:
It took only four months to double the global cryptocurrency population from 100 million to 200 million. If this trend continues, cryptocurrencies could soon exit the early adoption phase and enter an inflection point of hyper-adoption, similar with other technologies. There is a point where adoption rates begin to rise and do not look back… Precise numbers aside, there is no doubt that global cryptocurrency adoption is rising and could soon hit a hyper-inflection point.
At the same time, the report suggests it would be foolish for anyone to simply jump into the crypto trading space without research. It says that many digital assets are still “maturing” and in an infancy stage. Thus, there could be problems surrounding these assets in the future and traders need to remain patient as all the kinks are worked out through future regulatory tactics.
As of late, the crypto space appears to be suffering from bearish trends. While bitcoin is back in the mid-$40,000 range – a solid improvement from the $37,000 and $38,000 it was seeing just a few weeks ago – the numbers of today are nothing compared with, for example, what traders saw in late 2021. During that time, bitcoin was trading at a new all-time high of roughly $68,000, while Ethereum had also surged past the clouds.
Things Aren’t So Bad
Still, not everyone is convinced that hope is lost. Andras Ivan – an analyst at Broker Chooser – explained in an interview:
Even though the current crypto trend looks bearish, we have to take into consideration that the structure of crypto investments is quite different now compared to the previous peaks at the end of 2017. The market cap is significantly higher now, and institutional investors joined in the past one to two years. That might help the market to avoid such serious drops and disappearing interest that we experienced in the crypto winter of 2018-2019.