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Cryptocurrency has become ‘too big to ignore’, says new research report from Bank of America



A Bank of America (BofA) report published earlier this week claimed that crypto-based and backed industries have seen a huge global explosion, making the space “too big to ignore”. Titled Digital Assets Primer: Only First Inning, the report has compiled a detailed analysis of the current blossoming phase of blockchain technology, which supports the crypto-space. Furthermore, the report highlights that BofA is open to exploring more deeply into the crypto-space and looking beyond bitcoin, the world’s most valuable cryptocurrency.

Recognizing that bitcoin is important, research claims that large-scale institutional investors have invested $17 billion (about ₹1,27,055 crore) in the decentralized finance (DeFi) ecosystem. The DeFi system aims to provide an autonomous and decentralized alternative to financial services that are otherwise regulated by banks and national or international administrations.

BofA has placed special emphasis on a prediction that says the way blockchain technology use cases could change and power many industries in the near future. Blockchain eliminates the need or central authority to monitor financial transactions, giving users autonomy over their assets and transactions.

“Bitcoin is important, but so is the digital asset ecosystem. Our research aims to explore its implications across industries including finance, technology, supply chain, social media and gaming,” said Alkesh Shah. “In the near future, You can use blockchain technology to unlock your phone; buy a stock, house or share of a Ferrari; receive dividends; Borrowing, lending or saving money; Or even pay for gas or pizza”.

According to research, around 221 million people have traded in cryptocurrencies in recent days – indicating the continued growth of the sector.

Mergers and acquisitions in the crypto space have also grown from $940 million (approximately Rs 7,025 crore) in 2020 to $4.2 billion (Rs 31,390 crore) in 2021.

The research also addressed the growing craze around non-fungible tokens (NFTs) – which are digital assets representing art, music, in-game items and videos, among other unique items that can be used as collectibles using cryptocurrencies. can be purchased as However, the report cautions NFT investors to do an in-depth analysis of all financial risks that are tagged with investing in highly valuable NFT pieces.

BofA released the report just days after US Federal Reserve Chairman Jerome Powell said the central bank has no intention of imposing sanctions on the crypto sector.

According to a report by Fulicrypto, the US Federal Reserve is also known to have created an official digital dollar. The crypto-market has registered major growth in Oceania, South and Central Asia as well as Central, Northern and Western Europe.

In recent studies, market research firm Chainalysis revealed that the cryptocurrency market grew by 706 percent and was valued at $572.5 billion (about Rs 42,62,844 crore) in two regions – Central and Southern Asia, as well as Oceania (CSAO). reached. Between July 2020 and June 2021.

The region of Central, Northern and Western Europe has become the world’s largest crypto economy, with over $1 trillion (about Rs 74,46,016) in transactions in the same period.

Interested in cryptocurrency? We discuss all things Orbital with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, is not legal tender and is subject to market risks. The information in this article is not intended to be financial advice, trading advice or any other advice or a recommendation of any kind offered or endorsed by NDTV. NDTV shall not be liable for any loss arising out of any investment based on any alleged recommendation, forecast or any other information contained in the article.


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