Wells Fargo & Co (NYSE:WFC) argued that cryptocurrencies “are viable investments today” in a recently published Special Report titled “Understanding Cryptocurrency.”
What Happened: Analysts from the Global Investment Strategy team made a case for investing in cryptocurrencies today as they appear to be “near a hyper-adoption phase, similar to that of the internet during the mid-to-late 1990s.”
Cryptocurrencies, turning in some of the best performances over the past decade (versus other major asset classes) have new investors fearing that they may be too late,” wrote Wells Fargo analysts.
“We understand the 'too late to invest' argument but do not subscribe to it. We believe that focusing too much on past performance, especially with cryptocurrencies, can be misleading to new investors.”
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Analysts at Wells Fargo believe it's still early, although not too early to invest in cryptocurrency. Their thesis comes from analyzing global crypto adoption rates which have quickly surged from a low base.
Data from Crypto.com revealed that the number of crypto users across the globe hit 221 million in June 2021. Still, this number is under 3% of the world’s population implyin there is still room for a massive surge in adoption in the years to come.
Photo: Wells Fargo
“There is a point where adoption rates begin to rise and do not look back. For the internet, that point was the mid-to-late 1990s,” wrote analysts.
“By 2010, worldwide internet use had grown to 1.98 billion, and today it sits at 4.9 billion.”
Price Action: As of Thursday morning, Bitcoin was trading at $44,700, up 2.6% in the last 24 hours. The leading digital asset has appreciated more than 65,000% over eight years.
