In a conversation at the Exchange conference in Las Vegas, which has brought together about 2,000 investment advisors and asset managers, Dominic Rizzo, global technology portfolio manager at R. Rowe Price-the firm that handles over $1 trillion in assets -said that now is a good time to have exposure to bitcoin.
He likened the price of bitcoin to a commodity and how investors should think about investing in it.
"Bitcoin itself has traded very close to its average cost of mine. So if you think about it like a traditional commodity, that's actually historically a really good time to have exposure to it when it's close to its cost of mine," he said.
In traditional commodity investing, when the cost of mining or extracting a commodity is close to the spot price, it often signals that the commodity's price might have found the floor or has a limited downside. This is something contrarian investors look for when investing in commodities, as the bearish sentiment could be priced in when such an event occurs. Rizzo seems to be alluding to such a dynamic in play for bitcoin as well if one compares commodity cycles to bitcoin price.
According to MacroMicro blog, the current average price of mining bitcoin is around $84,770,
So here is cost price $84,770. After a deep liquidation beow this price buying seems safe.
