Investment banking and asset management firm JMP Securities says “the crypto economy is entering the mainstream,” stressing that a “breakthrough” has been established in the adoption and initial use of crypto. However, the firm’s analysts point out that “the industry is still in its infancy. . “
‘Crypto economy entering mainstream’
JMP Securities recently released a research note that discusses cryptocurrency adoption. Noting that “the crypto economy is entering the mainstream,” analysts wrote:
The crypto market has come a long way in its short existence, and we believe that ‘escape speeds’ have been established in both acceptance and initial use, leaving binary arguments about its fate out of the table at the moment.
Analysts further explain that “the industry today is far from perfect, scandals exist, control is underdeveloped, and more education is needed considering the technical aspects of the industrial space that do not always make acceptance and use intuitive.”
Nevertheless, they believe that the industry’s potential “investment and development continues”
They added that in the early days of Bitcoin, “the crypto ecosystem was unproven and uncertain.” However, they elaborate: “Today we believe that the negative outlook is risky enough to accelerate acceptance and strengthen the foundation of utility expansion, which already looks like a relatively established network, although what we see is an indicative long-term growth cycle.”
Analysts also see the Nasdaq-listed crypto exchange Coebenes as “a flag bearer in the development of the larger crypto economy.” They concluded:
Despite the index scaling of adoption, we think the industry is still in its infancy, and as crypto use expands rapidly, we see a tremendous rise for companies (such as Coinbase) that provide the infrastructure to support this growth.
Do you agree with JMP Securities? Let us know in the comments section below.
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