Asset management and investment banking firm JMP Securities reports that “The cryptocurrency economy is now breaking into the mainstream,” stressing that cryptocurrency “adoption cases have created ‘escape velocity.” However, the company’s analysts also say that “the sector is still in its early stage.”
‘The Crypto Economy Is Now Breaking Into The Mainstream’
JMP Securities recently released a research note that talks about cryptocurrency use. Noting that “The cryptocurrency economy is breaking into the mainstream,” the analysts said:
“The crypto sector has traveled a long way in its short life, and we think both adoption cases and early use have created an ‘escape velocity,’ where binary arguments concerning its future are pretty much removed from the table at this time.”
The analysts further said that “The sector is not perfect today, scams are there, regulation is not developed, and the industry requires more education about the technical parts that are not always intuitive.”
Nonetheless, they think the industry’s future “justifies continued development and investment,” adding, “We expect the perceived negatives in this sector will keep getting better and improve with more time and maturation.”
They added that in the early years of bitcoin, “the crypto ecosystem was uncertain and unproven.” However, they continued: “Today, we think the negative view has been greatly de-risked with adoption accelerating and its utility and foundation already seeming more like an established network, even with what we see to be the early innings inside of an exponential growth cycle.”
The analysts also said that the NYSE-listed crypto company Coibnase was “a flagbearer for the creation of the larger cryptocurrency economy.” They said:
“Even with the exponential increase of adoption, we believe the industry is still in its early stage, and as use cases for cryptocurrency rapidly increase, we see huge upside for these companies (such as Coinbase) that give infrastructure to help its growth.”
This comes at a time when many experts are touting Bitcoin as reaching a breakout phase where it could have another huge increase. Still, others are skeptical of Bitcoin with some banking insiders questioning if the crypto is truly limited in coins as is said to be the case.
Author: Scott Dowdy
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