During a discussion at the Exchange conference in Las Vegas, attended by approximately 2,000 investment advisors and asset managers, Dominic Rizzo, the global technology portfolio manager at R. Rowe Price—managing over $1 trillion in assets—mentioned that now is an opportune moment to invest in bitcoin.
Rizzo compared bitcoin’s pricing to that of a commodity, suggesting a perspective for potential investors. “Bitcoin has been trading quite near its average mining cost. So, if you consider it a traditional commodity, this historically presents a favorable time to invest when the price approaches mining costs,” he noted.
In typical commodity investing, when the cost of mining or extracting a commodity is close to the spot price, it often indicates that the commodity’s value may have stabilized or exhibits limited potential for decline. This scenario is particularly appealing to contrarian investors, who seek out such situations to capitalize on when the market sentiment appears overwhelmingly negative. Rizzo appears to draw a parallel with bitcoin, suggesting a similar pattern may be emerging when analyzing commodity cycles alongside bitcoin prices.
As reported by the MacroMicro blog, the current average cost for mining bitcoin is approximately $84,770, while the spot price is around $87,000.
Navigating the Blockchain and AI Revolution
Rizzo also stated that he perceives blockchain technology and digital payments as crucial components of the fintech and artificial intelligence (AI) landscape.
“As we transition from cash to digital payments, the world is becoming increasingly interconnected … thus, I believe digital payments are central to the efficient movement of money and adopting software-driven methodologies in sectors that historically lacked such approaches,” Rizzo explained.
He emphasized that involvement in this transition should include exposure to blockchain, whether through stocks of companies like Coinbase (COIN), Robinhood (HOOD), or crypto miners benefiting from the rise of AI.
