Blackrock’s Chief Funding Officer, Rick Rieder, mentioned cryptocurrency, together with bitcoin, “is right here to remain.” As well as, he mentioned bitcoin is a sturdy mechanism that would exchange gold.
Blackrock on Bitcoin and Gold
Rick Rieder, Blackrock’s Chief Funding Officer (CIO) of World Mounted Earnings, talked about bitcoin changing gold in an interview with CNBC’s Squawk Field on Friday.
Blackrock is the world’s largest asset supervisor, with greater than $7.four trillion in property beneath administration as of September. Rieder can be Blackrock’s Head of the World Allocation Funding Group within the Multi-Asset Methods Group.
Responding to a query concerning the worth of bitcoin and gold and whether or not he’s a bitcoin bull, Rieder mentioned:
I believe cryptocurrency is right here to remain.
Rieder elaborated: “I believe it’s sturdy, and also you’ve seen the central banks which have talked about digital currencies. I believe digital foreign money and the receptivity — significantly millennials’ receptivity — of know-how and cryptocurrency is actual. Digital fee techniques are actual, so I believe bitcoin is right here to remain.”
When it comes to whether or not he’s a bitcoin bull, Rieder mentioned: “I don’t do a variety of it, or a lot any of it, in my portfolios, my company portfolios, my enterprise portfolios.” Whereas stating that “It’s onerous to say whether or not it’s [bitcoin’s] definitely worth the worth it’s buying and selling at at present,” he affirmed:
However do I believe it’s a sturdy mechanism that would exchange gold to a big extent? Yeah I do, as a result of it’s a lot extra useful than passing a bar of gold round.
Reid’s feedback have been very welcome within the crypto neighborhood. Former Goldman Sachs hedge fund supervisor Raoul Pal tweeted:
That is large information. That is the most important asset administration agency on earth. 2021 is setting as much as be a 12 months of extreme provide shortages vs. demand in bitcoin, and upside worth dislocations.
Thomas Lee, Head of Analysis at Fundstrat World Advisors, commented that bitcoin is “killing it this 12 months — it’s simply crushing all different hedges and asset lessons this 12 months, however in 2021 I believe bitcoin could possibly be the 12 months of the fireworks … the perfect might be but to return.”
The Blackrock chief funding officer’s feedback adopted a string of different hedge fund managers saying that they personal bitcoin, together with Paul Tudor Jones, Bill Miller, and Stan Druckenmiller.
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