(Ex-Blackrock) investment adviser: I can compare crypto to the dot com era

Last Updated: 21 July 2022

Bitcoin is becoming more and more popular. Despite the decline in recent months, many big names in the investment world are still advocating bitcoin. This includes investment adviser and former Blackrock executive, Edward Dowd. He recently told a podcast that bitcoin is here to stay.

Bitcoin as a store of value

“Bitcoin has the qualities to make it into anyone’s portfolio,” Dowd told Layah Heilpern’s podcast. “Once bitcoin matures, it will probably beat gold because of unique characteristics, such as the ability to be traded digitally.”

He says gold is still a good ‘viable’ investment, but bitcoin would pay off perfectly as a ‘store of value.’ By this, he means that bitcoin is a good store for your funds, which are likely to become more valuable in the future.

‘Gold is harder to sell’

“Bitcoin is here to stay,” Dowd said. In the conversation with Heilpern, he talks about gold and its disadvantages when compared to the largest crypto currency. “At least with bitcoin, you can exchange it digitally, and gold to me is a much harder sell,” he said.

And even though it seems like he doesn’t have a high opinion of gold, he does stress that he’s not against it. “Having some gold is not a bad idea,” he told us.

Crypto compared to the dotcom bubble

The investment adviser also said that as the crypto sector matures, Bitcoin is likely to stand out from the rest of the market. According to him, most crypto coins will collapse, while the stronger ones will survive. Right; exactly like with the dotcom era.

“I can compare crypto to the dot com era where 90% of those companies went to zero. 10% of them became Amazon. The job of the crypto people is to figure out what the ‘Amazon crypto’ is. I think bitcoin is clearly in the running.”

Moreover, the investment adviser maintained that bitcoin’s growth would be led by transparency, freedom, and technology. According to Dowd, these are core qualities of bitcoin that make it better than a central bank.

Author

  • Steven Gray is a journalist with a heart for crypto. He filters the wide range of news and ensures that it reaches the public in a comprehensible way. He often does this with the support of technical analysis.

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