BlackRock CIO sees Bitcoin as gold substitute

Rick Rieder, Chief Investment Officer (CIO) of the world’s largest asset manager BlackRock, recently made a positive comment on Bitcoin. He believes that the increasing digitalization of currencies will allow for broad adoption of Bitcoin.

BlackRock Inc. is the world’s largest asset manager with $7.4 trillion in assets under management (AuM). CIO Rick Rieder was asked about Bitcoin in an interview with CNBC late last week. Although Rieder says he does not own Bitcoins himself, he is optimistic about its future. His statements are in line with other influential investors like Paul Tudor Jones.

Bitcoin: Here to stay

In a question about Rieder’s stance on Bitcoin, the BlackRock CIO replied that “cryptocurrencies are here to stay”. The two things that make him particularly positive are the large projects around central bank digital currencies (CBDCs) and the receptivity of Millenials to technology. He even sees the potential to replace the “safe haven asset” par excellence.

Do I think it [Bitcoin] 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 bar of gold around.

Rick Rieder, Blackrock CIO

In fact, through its investment in MicroStrategy, the Asset Manager is exposed to the price of Bitcoin to a certain degree. After all, the business intelligence company has invested a significant portion of its cash reserves in Bitcoin. The responses to social media were mixed but largely positive.

*Originally posted at CVJ.CH

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The CVJ editorial team consists of crypto experts, active in different areas around the blockchain technology. In cooperation with selected authors, CVJ.CH provides a high-quality resource around the distributed ledger technology. Independent and up-to-date reporting according to journalistic standards as well as educational content around the topic blockchain, rounds off the offer. 

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