Former Blackrock top manager, investment adviser believes that despite the recent turmoil in the cryptocurrency market, bitcoin will become an integral part of any investment portfolio.
In a recent podcast, Edward Dowd stated that over time, the first cryptocurrency is able to surpass gold due to its unique features: the ability to conduct transactions digitally, transparency and decentralization. In these key characteristics, bitcoin differs from gold and central bank digital currencies. Dowd believes gold will remain a viable investment, but BTC is more likely to become a store of value.
“Despite its ups and downs, Bitcoin is here to stay. It will be an integral part of every investor’s portfolio. At the very least, BTC can be sold or exchanged digitally, but with gold it is much more difficult. Although I am not against gold, having a small amount of it is also a good idea, ”says the investment adviser.
As the cryptocurrency industry matures, bitcoin will stand out from the rest of the market, the ex-top manager of Blackrock is sure. He compared the cryptocurrency market to the era of the dot-com crisis, when the vast majority of Internet companies closed down, and only stronger competitors managed to survive. Dowd cited the example of Amazon, which is still considered one of the largest technology giants.
Last month, Bank of England Deputy Governor Jon Cunliffe also compared the current bearish trend in the cryptocurrency market to the dot-com crisis.
Now the mood of traders is becoming more optimistic – the bitcoin rate has risen to $22,500, and the total capitalization of the cryptocurrency market has begun to recover, returning to the $1 trillion mark. As former BitMEX exchange chief Arthur Hayes recently stated, bitcoin is set to skyrocket as the U.S. Federal Reserve (Fed) could print trillions of dollars again.
Source: Bits
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