Blackrock: Bitcoin To Replace Gold?

Rick Rieder, CIO of Fixed Income for Blackrock, the largest asset manager in the US, shared his thoughts on Bitcoin:

Q: You had alluded to the distinction between what’s happened with the price of gold and  Bitcoin and you said you think it’s moving towards Bitcoin.  Is that a long term trend and does that mean you’re a Bitcon bull?  I ask because we talked to Jamie Dimon earlier this week who despite JP Morgan supporting crypto in a very big way and actually Bitcoin to some degree.. on Bitcoin itself he seemed to think it’s still really possible if it really reaches escape velocity maybe it’s getting closer as it passes $18,000 per Bitcoin that the government would try to regulate it.

A. (Rieder): So listen I think cryptocurrency is here to stay and I think it is a durable… and you’ve seen the Central Banks that have talked about digital currencies.. I think digital currencies and the receptivity, particularly millenials’ receptivity of technology, and cryptocurrencies is real, digital payments systems is real, so I think Bitcoin is here to stay. .. I think.. am I a Bitcoin bull?…  I don’t do a lot of it or actually any of it in my portfolios my corporate portfolios, my business portfolios, but do I think ..probably… it’s hard to say is it worth the price it’s trading at today?  But do I think it’s a durable mechanism that do I think it will take the place of gold to a large extent.. yeah I do because it’s so much more functional than passing a bar of gold around and btw the tracking ..the way you can track it…”

As more of the top institutional asset managers continue to speak positively about Bitcoin and understand the thesis as an alternative to gold, the more likely the market capitalization of Bitcoin could eventually surpass gold and reach roughly $400,000 per Bitcoin.   

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