Blackrock’s chief investment officer for global fixed income, the largest asset manager in the world, said that crypto and bitcoin are durable assets. “I think there’s a healthy recalibration going on,” he said, noting that “if you look two to three years hence, they will be higher than today.”
Blackrock’s Executive on Bitcoin and Crypto
CIO of global fixed income at Blackrock and chief investment officer (CIO), Rick Rieder shared his views on cryptocurrency and bitcoin in an interview with Yahoo Finance Live. Blackrock is the world’s largest asset manager with about $10 trillion in assets under management (AUM).
Rieder was questioned about the reaction of the crypto market to Fed tightening. The Fed hiked its benchmark rate by 75 basis points this week — the largest increase since 1994.
The CIO stated that people underestimate. If you leave rates at such low levels over a long period of time, then the leverage builds up in the system.
He emphasized however that
is the most important.
I still think bitcoin and crypto are durable assets. Although it’s a viable business, there was so much excess.
Rieder described: “It’s not terribly dissimilar from the internet bubble … if you go back to the ’99 and 2000, was the internet a bad idea? It wasn’t a bad idea. It was a good idea.
While he reiterated that he believes that bitcoin and crypto are durable assets which are “going to continue,” the Blackrock executive stated:
I think there’s a healthy recalibration going on. It is a matter of how far that recalibration will go.
When asked about the price of major cryptocurrency, he said that it was difficult to determine an intrinsic value for crypto. What is the value of crypto? It’s worth what .”
the next person will pay.
He said: “My impression is that in all these circumstances, you overshoot. And my guess is that you have probably got something to lose from here. It’s difficult to know what fair value is.” Blackrock chief investment officer shared more:
My sense is like a lot of assets, if you look two to three years hence, they will be higher than today.
” But it could also overshoot to the downside. He concluded that this is difficult to understand, much like gold.
Rieder made pro-bitcoin comments previously. In November 2020, he said cryptocurrency is here to stay, noting that bitcoin could replace gold. He also said BTC is “so much more functional than passing a bar of gold around.” In September last year, he revealed that he owns “a small piece of bitcoin,” emphasizing: “I like assets that are volatile that have upside convexity. I could see bitcoin go up significantly.”
What do you think about the comments by Blackrock’s chief investment officer? Please leave your comments below.
Kevin Helms
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection of cryptography and economics.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.
Read More