A professor of finance and business economics at the University of Southern California says asset managers focused on growth strategy may be in breach of their fiduciary duty if they do not consider bitcoin in their portfolios.
Asset Managers with a Growth Focus Need to Consider Bitcoin
The insider reported that financial researcher Nick Bhatia said last week that asset managers seeking growth returns on behalf of their clients need to consider bitcoin.
Bhatia is also an assistant professor of finance and business economics at the University of Southern California Marshall School of Business. In addition, he is the author of the book “Layered Money: From Gold and Dollars to Bitcoin and Central Bank Digital Currency”.
Growth managers who are responsible for securing growth returns for their clients who have not done research into bitcoin at this point are bordering on some sort of fiduciary breach.
“If you as a development manager are ignoring bitcoin now, you are ignoring that an alternative monetary reality has come into existence on this planet,” the professor said, clarifying that He’s not referring to fixed-income managers whose mandates are capital preservation and income.
Bhatia believes that asset managers should at least do their own analysis as to whether bitcoin or other cryptocurrencies are right for their clients. After studying the advantages and disadvantages of cryptocurrencies, they can decide whether to invest or not. However, he said that he does not see this happening, emphasizing that the asset manager cites old narratives advocating to avoid bitcoin and cryptocurrencies. He went on to say that those who pretend that bitcoin is a bubble have not done their research.
Drawing attention to the US dollar, Bhatia said that the USD is losing its position as the global reserve currency, noting that with inflation, assets like land are being treated as almost a better reserve asset than the dollar. .
The researcher further added that bitcoin is not only meant to remain as a store of value, but it could also become “the anchor for the global monetary system in the future, replacing the US dollar”, the publication reported. He also believes that “the bitcoin protocol for monetary settlement will become the system upon which other systems are built.”
“I worked in the bond industry for many years, and I worked in both an operational and trading capacity. I was involved in emailing and faxing dollars through the wire process, and via Fed wire, and repo settlement, and DTC. From US Treasury Securities Settlement,” Bhatia shared with the publication, elaborating:
I saw it every day of my life for many years, up close, and personal. I know the antiquated nature of final settlement and dollar world, it’s just old technology. And bitcoin is the technology that will underpin what we think of as the ultimate settlement in the future.
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