“Amazon Of Crypto” – Former Blackrock Executive Predicts Everyone Will Hold This Crypto As The Price Of Bitcoin, Ethereum, BNB, XRP, Solana, Cardano, Luna And Dogecoin

“Amazon Of Crypto” – Former Blackrock Executive Predicts Everyone Will Hold This Crypto As The Price Of Bitcoin, Ethereum, BNB, XRP, Solana, Cardano, Luna And Dogecoin

After last month’s rout, the crypto is on the rebound.

Over the past week, the price of bitcoin has climbed 12.1% and the price of ethereum has jumped 35.5%. XRP
XRP
is up 8%, cardano 14.6%, dogecoin 11.8%, BNB
BNB
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 the crypto bear market to the dot-com bust. He believes it is a necessary market clearing that will give rise to the crypto equivalents of today’s internet behemoths.

The Amazon

AMZN
crypto

Speaking on Layah Heilpern’s podcast, Down singled out bitcoin as one of the leading candidates to become the long-term top crypto.

Drawing parallels to the dot-com era, the former Blackrock executive called cryptocurrency “the Amazon of crypto.” He predicts that bitcoin will become much more stable after this bear market. And once its volatility subsides, most investors will embrace it as a modern alternative to gold.

In theory, this is a feasible thesis. As I wrote last year, “Fit, bitcoin
BTC
is probably the furthest thing from gold you can think of. But as an investment, the two are very similar. Like gold, bitcoin has little use. Its offer is limited, not by nature but by design. And its value depends largely on supply and demand rather than law enforcement and monetary policy.

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

During the pandemic, major cryptocurrencies have become an increasingly correlated high-beta asset class, which only amplifies stock movements. This indicates that investors still view crypto as a speculative investment rather than gold-like portfolio insurance.

Look forward

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

Volatility is one of the reasons why investors are slow to adopt it for its original purpose. “The reason for this is that for most institutional investors the volatility of each class matters in terms of managing portfolio risk and the higher the volatility of an asset class, the more risk capital consumed by that asset class. asset class is high,” 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? In other words, what if bitcoin’s volatility fades and the cryptocurrency catches up to gold in terms of demand for the store of value?

If bitcoin matches private investments in gold, JPMorgan predicts that the price of bitcoin could reach $146,000 in bitcoin in the long term. Meanwhile, Cathie Wood of Ark Invest estimated that the cryptocurrency could even exceed $500,000 if institutional investors only save 5% of their portfolios for it.

That said, these price targets will not happen overnight, if at all. Even Dowd, who is a firm believer in bitcoin, thinks that the crypto cleanup will take time and mainstream adoption of bitcoin will be a long process.

So, will investors substitute bitcoin for gold’s 5,000 years of experience so soon? And will they transfer a significant portion of their portfolio there? These are the questions that will determine where bitcoin is tomorrow.

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