Blackrock CIO: Cryptocurrency Is Here to Stay, Bitcoin Could Replace Gold

Sunday 22 November 2020, 2:50 AM AEST - 3 days ago

Blackrock CIO: Cryptocurrency Is Here to Stay, Bitcoin Could Replace Gold

Blackrocks Chief Investment Officer, Rick Rieder, said cryptocurrency, including bitcoin, is here to stay. In addition, he said bitcoin is a durable mechanism that could replace gold.

Blackrock on Bitcoin and Gold

Rick Rieder, Blackrocks Chief Investment Officer (CIO) of Global Fixed Income, talked about bitcoin replacing gold in an interview with CNBCs Squawk Box on Friday.

Blackrock is the worlds largest asset manager, with more than $7.4 trillion in assets under management as of September. Rieder is also Blackrocks Head of the Global Allocation Investment Team in the Multi-Asset Strategies Group.

Responding to a question about the price of bitcoin and gold and whether he is a bitcoin bull, Rieder said:

I think cryptocurrency is here to stay.

Rieder elaborated: I think it is durable, and youve seen the central banks that have talked about digital currencies. I think digital currency and the receptivity — particularly millennials receptivity — of technology and cryptocurrency is real. Digital payment systems are real, so I think bitcoin is here to stay.

In terms of whether he is a bitcoin bull, Rieder said: I dont do a lot of it, or much any of it, in my portfolios, my corporate portfolios, my business portfolios. While stating that Its hard to say whether its [bitcoins] worth the price it is trading at today, he affirmed:

But do I think it is a durable mechanism that could replace gold to a large extent? Yeah I do, because its so much more functional than passing a bar of gold around.

Reids comments were very welcome in the crypto community. Former Goldman Sachs hedge fund manager Raoul Pal tweeted:

This is huge news. This is the largest asset management firm on earth. 2021 is setting up to be a year of severe supply shortages vs. demand in bitcoin, and upside price dislocations.

Thomas Lee, Head of Research at Fundstrat Global Advisors, commented that bitcoin is killing it this year — its just crushing all other hedges and asset classes this year, but in 2021 I think bitcoin could be the year of the fireworks … the best is probably yet t ...

Read full story on Bitcoin News

Disclaimer: The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.