The chief investment officer at the world’s top asset manager, BlackRock, argued that Bitcoin may be a better store of value than gold.
During an interview with CNBC published on Nov. 20, BlackRock global fixed income CIO and managing director Rick Rieder said that he cannot estimate Bitcoin’s real value, but also argued that it could replace gold. He explained:
“It’s hard to say whether it’s worth the price it is trading at today. But do I think it is a durable mechanism that—do I think could replace gold to a large extent? Yeah I do, because it’s so much more functional than passing a bar of gold around.”
Rieder also said that he believes cryptocurrency—and Bitcoin specifically— “is here to stay.” He pointed to the receptivity to such assets by younger generations, and also praised the traceability of digital assets.
Many in the cryptocurrency industry view Reider’s comment as major news for the space, given that—with its $7.8 trillion of assets under management—BlackRock is the world’s largest asset manager according to an October Reuters report.
Raoul Pal—the founder and CEO at Global Macro Investor and Real Vision Group said on Twitter, “This is huge news. This is the largest asset management firm on earth. 2021 is setting up to be a year of severe supply shortages vs. demand in Bitcoin, and upside price dislocations.”
Pal is not the only person who noticed. Morgan Creek co-founder and partner Anthony Pompliano highlighted the importance of Rieder’s recognition of Bitcoin as a store of value. Furthermore, Meltem Demirors—the chief strategy officer at digital asset investment firm CoinShares—suggested that the pace at which major personalities are recognizing Bitcoin’s value is accelerating, “slowly, and then all at once.”
While recognition of Bitcoin by major figures helps increase the perceived legitimacy of the space, the coin’s price is also continuing to climb higher. As Modern Consensus reported earlier today, Bitcoin has reached highs not seen since immediately after it peaked at $20,000 in late 2017.