The BlackRock top executive, Rick Rieder has given reasons for his bias towards Bitcoin overtaking gold as the go-to store-of-wealth asset.
“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,” Rieder said.
Also, the BlackRock CIO of Fixed Income buttressed his bias, on why Cryptos are here to stay, taking into account its role in payments among the world’s millennials
“I think cryptocurrency is here to stay and I think it is durable and you’ve seen the central banks that have talked about digital currencies. I think digital currency and the receptivity, particularly millennials’ receptivity to technology and cryptocurrency is real. Digital payments systems are real, so I think Bitcoin is here to stay,” he added.
What you should know
BlackRock is the world’s biggest asset manager with about $7.4 trillion in assets under management as of end Q4 2019. Its massive size allows it to do what no other asset management on planet earth can do.
Nairametrics about a day ago revealed why the financial juggernaut of Europe’s biggest economy, Deutsche Bank, disclosed why it is steadily seeing Bitcoin as a legitimate store of wealth option.
Deutsche Bank Research Strategist, Jim Reid, gave key insights into what is changing investors to see Bitcoin more as a tool to hedge their cash better than traditional safe-haven assets like gold.
“Bitcoin is up another +3% overnight and seems to be creating a momentum of its own. It’s up over 70% in the last six weeks, as more and more investors are starting to see it emerge as a credible asset to invest in. There also seems to be an increasing demand to use Bitcoin where Gold used to be used to hedge Dollar risk, inflation, and other things,” Reid said.
Bitcoin’s strong performance is no shock to some analysts, especially in the context of the benchmark cryptocurrency showing a high correlation with global equity markets.
It’s fair to say that it might just be a matter of few years for the flagship crypto, Bitcoin, in overtaking the $10 trillion market capitalization of gold, taking into consideration the significant amount of limelight Bitcoin is getting among financial juggernauts in a span of just months.