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Blackrock CIO: Cryptocurrency is here to stay, Bitcoin could replace gold

Blackrock’s Chief Investment Officer, Rick Rieder, said cryptocurrency, including bitcoin, “has come to stay.” In addition, he said bitcoin is a viable mechanism that can replace gold.

Blackrock on Bitcoin and gold

Rick Rieder, Blackrock’s Chief Investment Officer (CIO) for Global Fixed Income, said bitcoin should replace gold 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 from September. Rieder is also Blackrock’s head of the Global Allocation Investment Team in the Multi-Asset Strategies Group.

In response 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 sustainable and you have seen the central banks that have talked about digital currencies. I think digital currency and the receptivity – especially millennial receptivity – of technology and cryptocurrency is real. Digital payment systems are real, so I think bitcoin is here to stay. ”

As for whether he’s a bitcoin bull, Rieder said, “I don’t do much of it or much of it in my portfolios, my business portfolios, my business portfolios.” While he said that “It is difficult to say whether it is [bitcoin’s] worth the price to trade today, ”he confirmed:

But do I think it is a durable mechanism that can largely replace gold? Yes, I do, because it’s so much more functional than letting a gold bar get around.

Reid’s 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 company on earth. 2021 is becoming a year of severe supply shortages in relation to bitcoin demand and upward price shifts.

Thomas Lee, research manager at Fundstrat Global Advisors, commented that bitcoin “kills it this year – it just crushes 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 not yet arrived. ”

The Blackrock investment chief’s comments followed a number of other hedge fund managers who said they own bitcoin, including Paul Tudor Jones, Bill Miller and Stan Druckenmiller.

What do you think of the Blackrock director’s view of bitcoin? Tell us in the comments section below.

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