TL; DR : It is not yet too late to enter crypto. In fact, we're still early. CRYPTO is just about to enter massive adoption and Wells Fargo want a piece of the pie.
If you want to know the evidences that crypto is about to enter the hyper-adoption phase, please read on.
Wells Fargo reported an interesting study early this February suggesting that the crypto space is entering a massive adoption phase akin to the adoption of the internet in the 90s.
The study examined how previous technologies like the internet, radio, and cellphones were adopted by society and tried to pinpoint where crypto adoption is right now.
According to the study, after a certain period of early adoption, technologies enter an inflection point on its growth wherein it grows exponentially. The chart below shows this hyper-adoption phase for well-known technologies.
The study suggests, however, that cryptocurrency right now is still at the early adoption phase as people are still figuring out how the technology is used and how it can benefit them. At this stage, the technology is still clunky much like the internet in its early stage. Aside from that, newcomers are still wary of this new technology and they still don't understand clearly the use case of cryptocurrencies.
However, it is also nearing the adoption of the internet during the mid-1990s where it hit an inflection point in growth and "never looked back". In the mid-1990s, approximately 14% of the American population used the internet. As of the moment, 13% of Americans purchased cryptocurrencies in the past 12 months and 3% of the world population uses cryptocurrencies.
Cryptocurrency adoption has also seen rapid adoption recently. In the last 4 months, the number of crypto users worldwide doubled from 100 million to 200 million.
So there you go, brace yourself as crypto is just about to get bigger REAL FAST SOON.
This was a very well-made study by Wells-Fargo. But, of course, it's possibly a marketing pitch to get you to avail their services. They’re now seeing opportunities in crypto and they want a piece of the pie.
Their recommendation was to not invest in crypto on your own but instead entrust it to professionals like Wells-Fargo since you may lose a lot of money just like a lot of people did during the dot com bubble.
I get the point that it’s easier to lose money in crypto than to gain, especially when you didn’t do your own research or someone rug pulls a project. And researching takes time as well as gaining skills in investing. If you don’t have the time, there is nothing wrong with having it handled by professionals.
Personally I’d still prefer it handled through a trustless system instead of a bank. As for the professional investment manager, of course, it is still important to DYOR on his performance. Not all professionals can guarantee that they can beat inflation or outperform the market. For instance, most high-cost hedge funds failed to outperform the S&P 500 from 2011 to 2020.
Yup, so what’s the point in having your money managed by them?
If you start now learning investing or trading while doing your job or other side hustles, in time, you'd get better at the game. You'd probably get hit a few times but just like any craft, you have to learn to stick with it. Results take time.
Anyway, at least Wells Fargo's report suggests that crypto mass adoption is just around the corner. And, I agree with that. Politicians who want to be elected or re-elected are turning pro-crypto to attract voters. The world can really be interesting.
If crypto hits mass adoption, this can lead to more gains for early adopters. But more than that, it can get more people to benefit from this amazing technology. The world may encounter hiccups along the way as they embrace this innovation, but the beauty of crypto is that it's adaptable to change. People will more or less figure out how to make the technology better for everyone.
That's all! Crypto just landed on the moon and it’s about to reach for the stars. I'm hoping you're already riding the rocket ship.
Posted Using LeoFinance Beta
