Wells Fargo Bank Advisor and Subsidiary, Wells Fargo Investment Institute[WFII]U.S. analysts say that cryptocurrency adoption is still in its early stages.
It’s Not Too Late to Buy Crypto
In a report published by WFII’s Global Investment Strategy team, analysts said Wells Fargo believes it is too late to invest in cryptos despite their rapidly rising prices.
“We understand the ‘it is too late to invest’ argument but do not subscribe to it. We believe that focusing too much on past performance, especially with cryptocurrencies, is a deterrent to new investors. can be confusing,” he wrote.
The report noted that the crypto space is still a nascent industry, noting that most of the top coins were launched less than five years ago. He added that even the oldest cryptocurrency, bitcoin is still far from fully maturing.
soon but not too soon
Instead of considering cryptocurrency investments as “too late”, analysts classify them as an “early but not too early” stage.
He noted that the adoption rate of Crypto Mirror mirrors other new advanced technologies such as the Internet but on a much advanced scale.
“We see cryptocurrencies in the ‘early, but not too early’ investment phase… Cryptocurrency adoption rates are following the path of other previously advanced technologies, particularly the Internet. If this trend continues, then Cryptocurrencies may soon exit the early adoption phase and enter an inflection point of over-adoption.”
The need for education and regulatory clarity
The analyst emphasized that investors should learn as much as they can about the cryptocurrency space and the investment options available in the market.
He acknowledged that there are currently a limited number of crypto investment products available to investors, adding that existing exchange-traded products in the US are backed by futures, not digital assets themselves.
“We do not recommend any other existing investment options such as mutual funds, ETFs, grantor trusts and individual cryptocurrency speculation. We expect more regulatory clarity in 2022 to bring in higher quality investment options,” the analysts said.
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