In a research titled “Digital Assets Primer: Only the First Inning,” Bank of America Global Research premiered its coverage of Bitcoin and cryptocurrencies earlier this week.
The study team, led by analyst Alkesh Shah, delved into the complexities of the “new asset class,” yet much of the analysis was skewed toward Bitcoin.
Digital currencies like bitcoin are “too big to ignore,” according to Alkesh Shah and Jessica Reif Ehrlich, among other strategists.
“In our opinion, there may be greater opportunity than doubters believe,” the strategists said.
Bitcoin momentum up
According to Bloomberg, the survey reveals that Bitcoin and cryptocurrency are “gaining traction” on Wall Street despite its many issues.
Bloomberg said that Bank of America also highlighted the importance of regulation in the asset class, suggesting that more regulation may be advantageous for crypto in the long haul.
“The confusion about how to invest in crypto will be eliminated once rules are set,” Bloomberg quoted the research group as saying.
BOA, like many mainstream analysts and economists, seemed to have failed to recognize the distinction between Bitcoin and “crypto” due to a mix of assumptions and a lack of understanding.
Shifting crypto landscape
When BOA finance planners believe “crypto” has true value propositions, they’re missing the point, because all other “altcoins” don’t require a token or a blockchain in the first place.
But, perhaps most fundamentally, the bank ignores the fact that while digital assets purport to “enhance” the existing financial system, Bitcoin — the world’s largest cryptocurrency by market capitalization — is here to render it obsolete.
When it comes to crypto, regulation is, to some extent, immaterial. The peer-to-peer network, which includes BOA, intends to displace the entire system, so it makes sense for them to focus on what doesn’t harm their business model.
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