Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Bank Of America Flip Bullish On Bitcoin – And Also Ethereum, DeFi and NFTs

Bank Of America Flip Bullish On Bitcoin – And Also Ethereum, DeFi and NFTs

Bank of America's latest blockchain industry report calling it “the most exciting new market in years.”

Bank of America (BofA), the second-largest bank in the United States has given mixed messages on crypto in the past—including slamming Bitcoin as “slow” and “impractical” in a March research note. But now, the global research division of the banking giant is sounding very positive about the future of the wider crypto industry, even describing itself as “bullish” about the overall ecosystem.

Calling blockchain “the most exciting new market in years,” Bank of America Global Research’s new Digital Asset Primer is widely enthusiastic about the growing industry, touching on everything from popular cryptocurrencies to decentralized apps, the burgeoning decentralized finance space, stablecoins, and even NFTs.

Right off the bat, the report states that the “digital asset sector [is] too large to ignore,” and that there’s more to watch beyond Bitcoin. “We believe crypto-based digital assets could form an entirely new asset class,” the report reads. “Bitcoin is important with a market value of ~$900 billion, but the digital asset ecosystem is so much more.”

Bank of America’s report highlights the potential for smart contract platforms like Ethereum to power a potential array of services and functionality. Smart contracts are bits of code that perform set instructions, and they’re critical to the use of dapps and DeFi—a catchall term for the sort of peer-to-peer financial services that don’t require intermediaries like Bank of America.

“In the near future, you may use blockchain technology to unlock your phone; buy a stock, house or fraction of a Ferrari; receive a dividend; borrow, loan or save money; or even pay for gas or pizza,” the report states.

Along the way, Bank of America cites sizable figures—such as more than $17 billion worth of venture capital investments in digital assets and blockchain firms in the first half of 2021 alone, compared to $5.5 billion across all of 2020.

It also cites the recent NFT market resurgence, which saw top marketplace OpenSea log more than $3 billion worth of trading volume each month in August and September. NFTs are tokens that can be used to represent ownership in digital items. According to the banking giant, DeFi and NFTs present “the most innovation” in the crypto space right now, while the firm added that the rise of NFTs was “a surprise for all.”

However, Bank of America suggests that sky-high asking prices of NFTs are a point of concern. Furthermore, the firm is apparently perplexed by the popularity of Loot and derivative projects, which are basic lists of text that can be used to form the basis of community-designed game projects.

“Simple images like a black background with a few words of text make us concerned that there are heightened risks in this segment that need to be fully understood before NFTs can achieve true adoption,” the company wrote.

Bank of America doesn’t gloss over potential roadblocks to the crypto industry’s continued growth, however. The report details the looming threat of increased regulation, particularly given recent comments by United States Securities and Exchange Commission (SEC) chair Gary Gensler. It also details potential legal, regulatory, technological, and environmental risks for various sectors of the industry.

But the report also attempts to defray criticism of blockchain networks and crypto assets, highlighting past instances in which technological advances were criticized as being “solutions looking for a problem.”

Bank of America points out past negative comments made by prominent individuals—including the late Apple CEO Steve Jobs and former Nintendo president Reggie Fils-Aimé—about computers, video streaming, and smartphones, all of which eventually proved to be enormous, thriving industries. The firm believes blockchain technology will similarly provide “disruptive innovation” and ultimately prove critics wrong.

“Despite rapid growth and market values on par with some of the largest public companies in the world, we believe the digital asset ecosystem is only getting started,” the report notes. “We are beginning the long journey of covering what we believe to be the next generation of technology—blockchain-based digital assets and applications.”

Source: Bank Of America Flip Bullish On Bitcoin – And Also Ethereum, DeFi and NFTs – Fintechs.fi

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
×