The crypto industry is still nascent and poised for hyper-adoption, says Wells Fargo

• Wells Fargo has advised investors that it is not too late to put their money into crypto
• The bank is likening crypto’s adoption rate to the internet in the mid-to-late 90s
• The bank, however, disapproves investment via crypto exchanges, mutual funds, and ETFs at the moment

American financial services company Wells Fargo earlier this week said on a note to investors that it’s early but not too early to get into cryptocurrencies.

Over the past dozen months, crypto assets have seen it all – from the highest peaks to extreme volatility. Several coins bloomed during the crypto summer, and the sector’s market cap grew from just under $1 trillion to $3 trillion. This rapid industry growth has primarily been attributed to the increasing number of users joining the sector. Still, FOMO is rising among those yet to book a spot even as more get into the industry.

Drawing parallelism to the early internet days

Wells Fargo told investors that while it understands the “too late to invest” view of matters, it is still conceivable to join the crypto bandwagon. The banking institution backed its argument by explaining that adoption rates suggest the industry is in the “early, but not too early” phase.

The bank also demonstrated that the adoption of new technologies is usually rather slow in the early years. For context, the report showed that the growth in adoption charted a path like the internet’s onboarding of users in the 90s. Thus, Wells Fargo concluded that crypto was approaching an adoption inflection point, just as the internet demonstrated between the mid and late 90s.

“If this trend continues, cryptocurrencies could soon exit the early adoption phase and enter an inflection point of hyper-adoption, similar to other technologies. There is a point where adoption rates begin to rise and do not look back.” Wells Fargo added.

Comparatively, it said the adoption of crypto could even be ahead of the internet’s during the said period.

Cryptocurrencies are good investment assets

The bank additionally opined that cryptocurrencies currently qualify as feasible investments, even though these assets are still at an incipient phase as far as evolution goes. However, it warned users against investing directly via crypto exchanges, mutual funds, or ETFs. It, instead, recommends the use of “professionally managed private placements.”

Wells Fargo also noted that the crypto sector is still “a relatively young investment space” and that its uniqueness lies in the complexity of the underlying tech, something that has made it difficult to lure investors or attract research coverage.

The bank insisted that any predictions based on historical prices are inaccurate as the prices of these tokens have risen from virtually zero.

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