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Bank of America suggests consolidation of cryptocurrencies

Bank of America suggests consolidation of cryptocurrenciesThe Bank of America has advised the consolidation of cryptocurrencies, stating that there’s too much of cryptoassets in the digital market.

The firm’s suggestion comes amid the crash of the digital currencies.

Analyst at the financial institution, Jason Kupferberg, said the saturation of the cryptocurrency market is similar to the internet stocks of 2000, when the dot-com boom led to the emergence of many internet companies.

He said at the end, only few internet-related companies became successful. He expects same for the cryptocurrency market, which has about 19,800 cryptoassets floating in the air for investors to pick.

Read also: BUSINESS ROUNDUP: CBN fines three banks N800m for crypto transactions; Bitcoin holders make N2.51tr in two days; Other stories

“The reality is that there are too many crypto exchanges, there are too many cryptocurrencies and tokens,” Kupferberg told CNBC on Monday, adding that, “There’s going to need to be some sort of consolidation.”

Already, the cryptocurrency market is witnessing investors losing interest in hiding their funds within the cryptoassets, considering the total investment value of the digital currency market is down -12.47% to $971.52 billion, having previously enjoyed a position above $1 trillion market capitalisation.

The fall in the market cap was driven by the crash in bitcoin, which depreciated by -14.72% within the last 24hours, and currently trading at $23,561.87 per BTC, with a market cap of $449.24 billion.

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