Dominic Rizzo, the global technology portfolio manager for international investment giant T. Rowe Price, gave a speech at Tuesday’s Exchange conference in Las Vegas.
Dominic Rizzo, global technology portfolio manager at R. Rowe Price, the company that manages more than $1 trillion in assets, stated that now is a good time to be exposed to bitcoin during a discussion at the Exchange conference in Las Vegas, which has attracted roughly 2,000 investment advisors and asset managers.
He explained how investors might consider investing in bitcoin by comparing its price to that of a commodity. “The price of Bitcoin has been really near to my average cost. That’s traditionally a really favorable time to have exposure to it when it’s around its cost of mine, if you think of it as a typical commodity,” he said.
In traditional commodities investing, if the cost of mining or extracting a commodity is close to the spot price, the price of that commodity may have hit the bottom or have a limited downside.
Contrarian investors look for this when buying commodities since, should it occur, the negative sentiment might already be factored in. If one compares the price of bitcoin to commodity cycles, Rizzo appears to be hinting at a similar dynamic at work with the cryptocurrency.
The spot price of bitcoin is currently at $87,000, but the average cost of mining it is currently around $84,770, according to the MacroMicro blog.
How to play blockchain and AI revolution ?
Additionally, Rizzo stated that he believes digital payments and blockchain are essential components of fintech and artificial intelligence (AI).
“We are moving from cash to electronic payments as the globe grows more interconnected. Thus, in my opinion, digital payments are at the nexus of low-cost money transfers and implementing a software-driven strategy in hitherto non-software-driven fields,” Rizzo stated.
According to him, blockchain is a component of this revolution that every investor should be somewhat familiar with, whether that be by investing in stocks of businesses like Coinbase (COIN) or Robinhood (HOOD) or in cryptocurrency miners who are making money off of the development of artificial intelligence.
