Rick Rieder, CIO of BlackRock, one of the world’s largest asset management companies with nearly $10 trillion in assets under his management, stated on CNBC that he has Bitcoin investment and believes the price may increase significantly in the future.
Rieder described Bitcoin as an alternative currency where future price action will be determined by increased adoption. The BlackRock executive said, “I have a small amount of Bitcoin as I think over time there will be more people involved. I like volatile assets with upward convexity. I predict that Bitcoin may experience a significant increase.” said.
Rieder further emphasized that it is necessary to hold some Bitcoin as a speculative tool.
BlackRock reported in January that it could trade Bitcoin futures contracts through some of its funds. Later, the company started making Bitcoin transactions on a small scale. Warning that gold has succumbed to inflation, BlackRock has also invested in Bitcoin mining. The company has allocated close to $400 million in total to both Marathon and Riot Blockchain.
Rieder has previously said that Bitcoin is a better asset than gold. Arguing that Bitcoin will be permanent, the manager said, “Do I think there is a durable mechanism that can largely replace gold? Yes, I think so, because it’s much more functional than having a nugget of gold going around.” had spoken.
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