Despite the uptick, there are still naysayers who advise against allocating any investment capital into the cryptocurrency, including Nobel Prize-winning economist Richard Thaler who echoed famous investor Warren Buffett’s sentiment.
“Warren Buffett says a lot of smart things, and one of the things he says is, don’t make investments in things you don’t understand,” said Thaler. “And I have no clue [when it comes to bitcoin].”
Conversely, there are the bulls who feel that cryptocurrencies and blockchain technology, the underlying technology that forms the basis of cryptotcurrencies, present an opportunity. Investment firm BlackRock currently has a team exploring cryptocurrencies–a move by an institutional investment giant that could be a boon for Bitcoin and its cryptocurrency peers.
“BlackRock exploring crypto assets comes as no surprise and is definitely a positive development for the crypto market,” said Chris Yoo, a portfolio manager at Black Square Capital Management LLC. “As the largest asset manager in the world, its interest in crypto assets could be a catalyst for upward price movement and encourage other asset managers, even with more conservative strategies, to seriously explore investing in the crypto space.”
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