Wells Fargo likens crypto frenzy phase to 'internet' in dotcom bubble

Cryptocurrencies' "rapid" growth in usage and adoption over the past couple of years poses similarities to frenzy-driven events, such as the internet craze in the mid 1990s, Wells Fargo's global investment strategy team wrote in a report earlier this month. The gripping asset class, "appear to be near a hyper-adoption phase, similar to that of the internet during the mid-to-late 1990s," the note highlighted. The world's largest and most popular digital token by market cap, bitcoin (BTC-USD), has compounded at a 216% annual rate since its first recorded transaction in 2010 vs. just 16% compounded annually for the S&P 500 (SP500), according to the report. On the other hand, if BTC's price return was measured on a risk-adjusted basis, using the Sharpe ratio for example, then returns would likely look less attractive due to cryptos' high volatility (beta). Crypto is still early in the crypto investment evolution: Wells Fargo is