Entitled 'Bitcoin: Watch the Innovation, Not the Price', the 16-page report suggests that six months ago, the consequences of such instability would have been far worse for the industry.
The resulting stability, the report reasoned, should do much to continue to inspire more merchants, entrepreneurs and bitcoin users to get involved in the burgeoning industry.
Wedbush suggested heightened interest from investors will further improve not just bitcoin, but the entire digital currency ecosystem. As such, the report cautioned its readers not to be too skeptical of even some of the more "whimsical" market opportunities like dogecoin and RonPaulCoin.
The company stated:
Wedbush also included materials meant to compare bitcoin's volatility to that of other notable startups, including high-growth equities such as Facebook, Twitter and Tesla Motors.
The report provided evidence of what Wedbush called the "incredible growth" being observed in the ecosystem. Researchers suggested that they see this increase in bitcoin's user base as a sign the industry is moving "toward the widespread adoption".
Likewise, it noted Coinbase has already added more than 200,000 users to date this year.
In particular, Wedbush estimated Overstock's decision to accept bitcoin could increase its GAAP net income by as much as 2%, as it was able to profit from initial bitcoin spending without the risk, though it has said it may now keep some bitcoin reserves.
"We believe these early use cases will lead to other large merchants getting comfortable accepting bitcoin," the report concluded.
Stock Decline Image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.