1.7 k

Cryptocurrency Is Entering Hyper-Adoption, According To Wells Fargo

As crypto prices show signs of recovery following a three-month downtrend, some institutions remind investors that they’re still early to the space.

Among them is the international American bank Wells Fargo. In a recent report, the company argued that the crypto industry is entering a “hyper adoption phase” like the internet in the mid-1990s.

Crypto VS The Internet

As stated in the company’s report on Monday, the bank rejects the notion held by some investors that it’s “too late” to invest in crypto. “Past performance,” says the bank, “can be misleading to new investors”.

Most cryptocurrencies – especially in their earliest years – have hyper-speculative price movements. For instance, Bitcoin didn’t even have a market price until 2010 when someone used their holdings to buy two pizzas for an average of $0.004 per BTC. 

This speculation and volatility combined with misunderstanding and youth of the technology indicate that crypto is far from a mature industry – despite the growth it’s already seen. 

Instead, the bank likens the industry’s growth to the early internet and other emergent technologies. Adoption starts slow, the user experience remains clunky, and consumers need time to figure out the use-cases of such inventions. 

However, once adoption catches on, growth takes place remarkably fast. Data from Crypto.com shows over 220 million users of cryptocurrency worldwide in June 2021. That’s 100% higher than the number of users just four months prior. 

Like the internet, the bank expects crypto to enter soon “an inflection point of hyper adoption” where user numbers surge dramatically in a short amount of time.

“Be patient,” reads the report. “There is no need to rush, as most of the opportunity lies before us, not behind us.”

Other Analysts Agree

Raoul Pal – CEO of Global Macro Investor – has made similar comparisons of crypto to the internet in the past. For example, he often cites the 113% cryptocurrency user growth year over year, compared to the internet’s low 63%.

Yet the comparison also applies in a less savory light. Like early internet stocks, cryptocurrencies are prone to erratic boom and bust cycles that permanently killed thousands of them. 

Bitcoin live price
price change

Overall, however, optimism around the adoption and price action of the space remains high – especially regarding Bitcoin. Bloomberg recently claimed that Bitcoin’s new price ceiling could be $100k after its bounce this month. Previously, a former Goldman Sachs CEO admitted that cryptocurrency adoption and growth are “happening” in full swing. 

Stay up to date with our latest articles