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Wells fargo says it is not too late to purchase bitcoin

Bitcoin is approaching a “hyper-adoption phase,” similar to the internet in the mid-to-late 1990s, according to the banking giant.

It is not too late to invest in bitcoin, according to multinational financial services giant Wells Fargo in a Monday report, drawing parallels between internet adoption rates in the 1990s and cryptocurrency adoption rates today.

According to the report by Wells Fargo’s global investment strategy team, Bitcoin’s over 200 percent annualised gains since its first transaction in 2010 often lead some investors to believe that it is too late to join the party. The big bank, on the other hand, is not convinced.

“We understand the ‘too late to invest’ argument but do not subscribe to it,” the report said, explaining that Bitcoin and cryptocurrencies, like the internet in the mid-to-late 1990s, “could soon exit the early adoption phase and enter an inflection point of hyper-adoption.”

Furthermore, Wells Fargo believes that Bitcoin’s adoption rate will be even faster than the internet’s because “each new digital invention rides the coattails of the digital infrastructure that has already been built,” as evidenced by the steeper rise in smartphone adoption.

According to the chart above, “it appears that cryptocurrency use today may even be a little ahead of the mid-to-late 1990s internet.” “Regardless of precise numbers, there is no doubt that global cryptocurrency adoption is increasing and may soon reach a tipping point.”

According to the report, a steeper S-curve for Bitcoin could be fueled in part by increased regulatory clarity, as legal frameworks that have begun to be drafted solidify the digital currency as an investable asset for many high-net-worth individuals who have been hesitant to make an allocation.

Wells Fargo, on the other hand, advises investors to obtain bitcoin exposure through private placements by professional asset managers rather than purchasing the digital currency directly from an exchange, citing “complex technology.”

Purchasing bitcoin isn’t as difficult as it once was, thanks to the proliferation of user-friendly developments all over the world. In the United States, for example, users can buy BTC directly from Cash App, Block’s popular financial services app, and withdraw to a bitcoin wallet of their choice. Even though self-custodying bitcoin has a learning curve, the benefits outweigh the drawbacks in the long run because it is the only way to benefit from Bitcoin’s value proposition of complete financial freedom.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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