JMP Securities, a leading investment banking and asset management firm, says the crypto economy is entering the mainstream, emphasizing that early use cases and adoption of the asset have established escape velocity despite the industry still being in its formative stage. In a recently published piece of research, the analysts noted:
The crypto market has come a long way in its short existence, and we believe both adoption and early use cases have established ‘escape velocity,’ whereby binary arguments about its fate are all but off the table at this point. The industry is far from perfect today, scams do exist, regulation is undeveloped, and the industry needs more education given technical aspects of the space that make adoption and usage not always intuitive.
Regardless, they’ve said people should continue investing in and developing the industry and expect many currently imperfect aspects to keep improving with time. They believe it is becoming more and more established despite what they see as ‘the early innings of an exponential longer-term growth cycle.’
Tremendous upside for companies like Coinbase expected
JMP Securities believe Coinbase is ‘a flagbearer’ in wider crypto industry development, concluding that such companies will be seeing bigger and bigger advantages as providers of infrastructure facilitating industry growth. This is important as the industry is still in its ‘formative stage.’
Blackrock CEO changing his mind about crypto
In related news, Blackrock CEO Larry Fink told CNBC in an interview he was ‘fascinated’ by people’s interest in crypto, more specifically Bitcoin. Blackrock manages assets currently worth $9.5 trillion, making it the biggest asset manager in the world.
Some time ago, Fink went on record saying he agreed with JPMorgan CEO Jamie Dimon that Bitcoin was worthless. Dimon also expressed doubt regarding the cryptocurrency’s limited supply. When asked if he still believed it had no value, he said:
I am probably more on the Jamie Dimon camp, but I am fascinated by so many people’s interest. It’s fantastic. I love the fact that more people are looking to invest in different things. I believe this is a very good, positive action. I’m not a student of Bitcoin and where it’s going to go. I can’t tell you whether it’s going to be going to $80,000 or zero.
He added that he believed in its role, which is becoming critical in the digital asset industry. According to Fink, currencies like Bitcoin can help consumers all over the world.
