‘Amazon Of Crypto’ — Former Blackrock Exec Predicts Everyone Will Hold This Crypto As The Price Of Bitcoin, Ethereum, BNB, XRP, Solana, Cardano, Luna And Dogecoin Soar

Following last month’s rout, crypto is on the upswing.

Over the past week, the price of bitcoin has risen 12.1% and the price of ethereum has jumped 35.5%. XRPXRP
is up 8%, cardano 14.6%, dogecoin 11.8%, BNBGDP
13.6%, solana 15.2% and Terra’s “luna 2.0” 4.9%.

Meanwhile, in a recent interview, Edward Dowd, former CEO of Blackrock, compared crypto’s bear market to the dot-com bust. He believes it is necessary to clean up the market which will give rise to crypto equivalents of today’s internet juggernauts.

The Amazon
AMZN
of crypto

Speaking on Layah Heilpern’s podcast, Down singled out bitcoin as a leading contender to become the apex crypto in the long run.

The former Blackrock boss drew parallels to the dot-com era, calling the cryptocurrency the “Amazon of crypto”. He predicts that bitcoin will become much more stable after this bear market. And when volatility subsides, most investors will use it as a modern alternative to gold.

In theory, it is a feasible thesis. As I wrote last year, “In shape, BitcoinBTC
is probably the furthest thing from gold you can imagine. But as an investment, the two are very similar. Like gold, Bitcoin has little utility. The offer is limited – not by nature, but by design. And the value depends largely on supply and demand rather than enforcement and monetary policy.”

But so far, bitcoin has been the polar opposite of gold.

During the pandemic, bitcoin and major altcoins have grown into an increasingly correlated, high-beta asset class, which only amplifies stock movements. It signals that investors still view crypto as a speculative investment rather than gold-like portfolio insurance.

Looking forward

By Goldman Sachs calculations, bitcoin today claims about a fifth of the “store of value” market.

One of the reasons investors are slow to adopt it for its original purpose is volatility. “The reason is that for most institutional investors, the volatility of each class is important in terms of portfolio risk management, and the higher the volatility of an asset class, the higher the risk capital consumed by that asset class,” JPMorgan wrote in a note. . In other words, the higher the volatility of the asset class, the less capital portfolio managers can allocate to it.

What would happen if Edward Dowd’s prediction came true, that is, bitcoin’s volatility faded and the cryptocurrency caught up with gold in terms of store of value demand?

If bitcoin matched private gold investments, JPMorgan predicts that bitcoin’s price could reach $146,000 a bitcoin in the long run. Meanwhile, Ark Invest’s Cathie Wood estimated that the cryptocurrency could even cross $500,000 if institutional investors saved just 5% of their portfolios for it.

That said, these price targets won’t happen overnight, if ever. Even Dowd, who is a big supporter of bitcoin, believes the crypto purge will take time and bitcoin’s mainstream will be a long process.

So, will investors replace bitcoin with gold’s 5,000-year track record this early? And will they move a meaningful portion of their portfolio to it? These are the questions that will determine where bitcoin will be tomorrow.

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