Bank of America (BOA) summarized the characteristics of Bitcoin and Ethereum in a report on the 17th (local time). “Bitcoin is the most famous cryptocurrency, Ethereum has a DeFi (Decentralized Finance) program. It’s more flexible and has more features.”
“DeFi has brought a lot of innovation to exchanges. By using distributed ledger technology, it is possible to perform the functions of fiat currency transactions that were separated from each other in one integrated blockchain.” The BOA said, “DeFi shows how distributed ledger technology is applied to financing. In the near future, we will discover this feature of DeFi in mainstream finance.” He added that DeFi services, from derivatives to asset management, will also become areas of growth in the future.
The BOA gave bitcoin a salty score. The report is Bitcoin does not need to be held unless the price rises, and there are many environmentally disadvantages.He criticized him. The BOA also pointed out that Ethereum is “more scalable than Bitcoin, but there are many limitations in terms of speed, block size, and price.”
The BOA showed high interest in DeFi while calling the central bank digital currency’cryptonite of cryptocurrency’. That DeFi could be more destructive than Bitcoin. While evaluating the possibility of DeFi, the BOA said that the market is small at $35 billion (KRW 39 trillion), and that there is a long way to go compared to the mainstream financial market.
The report assessed that DeFi represents the rapid growth of blockchain-based trading and lending platforms that could challenge banks, Wall Street and insurance companies. This is in the same vein as JPMorgan Chase’s judgment last month that the rapid development of digital assets could pose an existential threat to traditional financial companies.