Dominic Rizzo, T. Rowe Price’s global technology portfolio manager, asserts that now is an optimal time to invest in Bitcoin, likening its price to commodities. He highlights the equilibrium between Bitcoin’s market price and its mining costs as a bullish indicator. Rizzo also emphasizes the potential of blockchain and digital payments in fintech and AI, encouraging exposure through related companies.

Dominic Rizzo, global technology portfolio manager at T. Rowe Price, recently stated at the Exchange conference in Las Vegas that the current market presents a favorable opportunity to invest in Bitcoin. He compared Bitcoin’s price dynamics to that of traditional commodities, emphasizing that Bitcoin is trading closely to its mining costs. Rizzo indicated this is traditionally when investors should consider obtaining exposure to such assets, marking it as a strategic entry point for Bitcoin investment.

Rizzo elaborated that historically, when the price of a commodity aligns closely with its extraction cost, it often signifies a potential price floor, appealing to contrarian investors. Presently, the average mining cost of Bitcoin stands at approximately $84,770, while its market price is around $87,000, suggesting limited downside risk.

Furthermore, Rizzo emphasized the significance of blockchain technology and digital payments as vital elements of fintech and artificial intelligence. He remarked on the global shift towards digital transactions, suggesting that the evolution of payment methods will greatly benefit from technology-driven solutions. Rizzo advocated for investors to consider direct exposure to blockchain through shares in companies such as Coinbase and Robinhood, or through investments in crypto mining enterprises.

The Exchange conference gathered around 2,000 investment advisors and asset managers, providing a platform for insights into current investment trends and strategies. Rizzo’s comments reflect a broader sentiment regarding the importance of blockchain in the financial ecosystem and the potential growth in digital assets and technologies.

In summary, Dominic Rizzo from T. Rowe Price advocates investing in Bitcoin, citing its favorable pricing relative to mining costs, which may indicate a price floor. He further stresses the integral role of blockchain and digital payments in the future of fintech and AI, urging investors to explore opportunities within this transformative landscape. Rizzo’s insights position Bitcoin as a strategic investment in the evolving financial market.

Original Source: www.coindesk.com

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