[ad_1]
Blackrock’s chief investment officer Rick Rieder said cryptocurrency, including bitcoin, “is here to stay.” Additionally, he said bitcoin is a sustainable mechanism that could replace gold.
Blackrock on Bitcoin and Gold
Rick Rieder, Blackrock’s chief investment officer (CIO) for Global Fixed Income, spoke about replacing gold with Bitcoin in an interview with CNBC’s Squawk Box on Friday.
Blackrock is the world’s largest asset manager, with more than $ 7.4 trillion in assets under management in September. Rieder is also head of the Global Allocation investment team at Blackrock in the Multi-Asset Strategies group.
Responding to a question about the price of bitcoin and gold and if he’s a bitcoin bull, Rieder said:
I think cryptocurrency is here to stay.
Rieder explained, “I think it’s sustainable, and you’ve seen the central banks talking about digital currencies. I think digital currency and the receptivity – especially the receptivity of millennials – of technology and cryptocurrency is real. Digital payment systems are real, so I think bitcoin is here to stay. “
As to whether he’s a Bitcoin bull, Rieder said, “I don’t do a lot, or not a lot, in my wallets, my corporate wallets, my business wallets.” While stating that “It is difficult to say whether it is [bitcoin’s] worth the price it is trading at today, ”he said:
But do I think this is a durable mechanism that could replace gold to a large extent? Yeah I do, because it’s so much more functional than passing a gold bar.
Reid’s comments were welcome in the crypto community. Former Goldman Sachs hedge fund manager Raoul Pal tweeted:
This is huge news. It is the world’s largest asset management company. 2021 is shaping up to be a year of serious supply shortages relative to demand for bitcoin and upward price dislocations.
Thomas Lee, head of research at Fundstrat Global Advisors, said bitcoin “is killing it this year – it’s just crushing all other hedges and asset classes this year, but in 2021 I thinks bitcoin could be the year of fireworks … the best is probably yet to come.
The comments from Blackrock’s chief investment officer followed a string of other hedge fund managers claiming they owned bitcoin, including Paul Tudor Jones, Bill Miller and Stan Druckenmiller.
What do you think of the Blackrock executive’s perspective on bitcoin? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Warning: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, nor a recommendation or endorsement of any product, service or business. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
[ad_2]
Source link