- Bank of America (BofA) launched its research into digital assets with the publication of a report titled “Digital Assets Primer: Only the first inning.”
- Strategists at Bank of America wrote that Bitcoin and cryptocurrencies are “too big to ignore.” “Our view is that there could be more opportunities than skeptics expect.”
- However, lured into the novelty of the alternative currency, Bank of America strategists may end up losing focus on what is really going to disrupt finance and money. – Bitcoin.
Bank of America Global Research kicked off its coverage of bitcoin and cryptocurrency earlier this week by publishing a report titled “Prime for Digital Assets: Round One Only.” The research group, led by strategist Alkesh Shah, delved into the intricacies of the “new asset class,” however, much of the analysis carried a myopic perspective on Bitcoin.
Strategists including Alkesh Shah and Jessica Reif Ehrlich write that Bitcoin and cryptocurrencies are “too big to ignore.” “Our view is that there could be more opportunities than skeptics expect.”
The report shows that enthusiasm for Bitcoin and cryptocurrencies is “gaining momentum on Wall Street despite many controversies over it,” Bloomberg mentioned.
BofA also discussed the role that regulation should play in the asset class, arguing that “more regulation could be positive for cryptocurrencies in the long run,” according to Bloomberg. “Once the rules are in place, the uncertainty about how to invest in cryptocurrency will be gone.”
As is usual for mainstream analysts and economists, Bank of America fails to acknowledge the line between bitcoin and “crypto” with muddled assumptions and a certain lack of understanding. Bank of America strategists get the plot wrong when they think “digital currencies” have actual value propositions – While in reality, not all other “altcoins” need a token or blockchain in the first place.
But perhaps most importantly, BofA failed to understand that while “cryptocurrency” allegedly seeks to “improve” the already existing financial system, Bitcoin is here to render it obsolete. Regulation is, to some extent, irrelevant when it comes to BTC. The peer-to-peer network aims to displace the entire system, including Bank of America – So it makes sense for them to go more for what doesn’t threaten their business model.