The study argues that the cryptocurrency sector’s $2.15-trillion market capitalization is “too good to pass up,” pointing out that the crypto currency environment has grown to include “far more” than simply Bitcoin and other cryptocurrencies (BTC).
“Tokens that function like operating systems, decentralized applications (DApps) that operate without the need for intermediaries, stablecoins backed by fiat currencies, central bank digital currencies (CBDCs) that can replace national currencies, and non-fungible tokens (NFTs) that enable interactions between creators and fans,” the report states, adding, “For us, cryptos are not about payment transactions in the traditional sense. They are concerned with a new computing philosophy – a configurable computer that is available to everyone and is held by millions of people across the world.”
As indicated in the Bank of America report, venture capital in the cryptocurrency and blockchain sectors has risen exponentially in 2021, with over $17 billion invested into the industry during the first half 2021, representing over triple the $5.5 billion invested into the industry over the course of a full year of 2020 (Figure 1). As part of its findings, the study estimated that 221 million people worldwide have traded cryptocurrencies or used a blockchain application as of June 2021, up from 66 million users in May 2020.
The applications developed using this latest software architecture seem to be expanding at a faster rate than those developed using previous technologies. “[…] Anybody in a network may create a procedure (app or venture) that ensures consistency and trust,” according to the report’s conclusions. When it comes to NFTs, Bank of America claims that the sector’s explosive expansion has taken even seasoned cryptocurrency users by astonishment, noting that the OpenSea marketplace earned more than $2.5 billion in revenue in the first half of 2021. While acknowledging the volatility associated with the fledgling NFT industry, the study cautioned that “heightened risks in this segment […] must be fully recognized before NFTs can gain widespread acceptance.”