Wells Fargo: We’re Still Early

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  • A Wells Fargo report has concluded that the crypto space is still young and investors aren’t missing out by waiting
  • Wells Fargo compares the crypto landscape to early 1990s internet
  • The bank urges those on the sidelines to wait until the landscape is less volatile and better regulated

Wells Fargo has dismissed the idea that it’s too late to invest in cryptocurrencies, arguing that the space is still maturing and the best is yet to come. In a February report on the state of the wider cryptocurrency market, Wells Fargo opined that cryptocurrencies are “still a relatively young investment space” and contrasted Bitcoin’s volatility to that of gold, saying that many institutions should wait until the volatility is lower before investing.

Not Too Late to Invest in Crypto

The authors of the Wells Fargo report say that they “do not subscribe” to the theory that it is too late to invest in cryptocurrencies, despite the sector’s performance in the past decade. They note how the technology backing the sector is difficult for many to comprehend and analyze, noting that, “It often takes many years for consumers to widely adopt new advanced technologies.”

This has certainly proved to be the case with cryptocurrencies, the use cases for which are yet to be realized outside of the crypto sector.

Wells Fargo Compares Crypto to Early Internet

Alongside understanding, The Wells Fargo report also notes that the usability of many crypto currency and DeFi applications leaves a lot to be desired:

In the early adoption years, user experiences with new technologies have often been clunky and frustrating as the ecosystem and infrastructure slowly matured. In the case of the internet, many readers may remember the days before the first web browser in 1993, when accessing the internet required typing at a prompt on a green screen. Talk about clunky.

The report strengthens the connection between the early days of the internet and the current state of the crypto market, adding how regulations will bring clarity and further investment opportunities as the projects with genuine use cases build and grow.

In summary, Wells Fargo urges investors to be patient, prudent, and careful, saying that the time will come when it is both easier and safer for institutions to invest in cryptocurrencies, news that will please both would-be and current investors alike.