Blackrock CEO Says “Bitcoin and Crypto Are Perpetual Assets – Prices Will Rise”

The head of global fixed income investments at Blackrock, the world’s largest asset manager, says Bitcoin and encryption It is a perennial asset. “I think there is a health recalibration underway,” he said, noting that “if you look two or three years from now, it will be higher than it is today.”

Bitcoin and Crypto Executive from Blackrock

Rick Rieder, chief investment officer (CIO) for global fixed income at Blackrock, shared his views on bitcoin and cryptocurrencies in an interview with Yahoo Finance Live on Thursday. On the same topic: Top 3 Bitcoin, Ethereum and Ripple Price Predictions: Cryptocurrencies Prepare for Rebound After First Buyers Punished. Blackrock is the world’s largest asset management company with approximately $10 trillion in assets under management (AUM).

Mr. Ryder was asked about the reaction of the cryptocurrency market when the Federal Reserve begins to tighten rates aggressively. The Federal Reserve raised its benchmark interest rate by 75 basis points this week – the largest increase since 1994.

The CIO explained, “I think people underestimate it. When you leave rates at such low levels for a long time… when you hold the policy the leverage is very easy in the trim system how do I get the payoff quickly” – and you’ll see a great deal Much of the leverage created around cryptocurrency disintegrates very quickly.”

I still believe bitcoin and cryptocurrency are sustainable assets. It’s a sustainable business, but there was a lot of surplus built around it.

Reeder describes: “It’s not much different than the Internet bubble…If you go back to the years 99 and 2000, was the Internet a bad idea? No, it wasn’t a bad idea. But you created a lot of surplus around it and you just have to disengage from that dynamic, and I think That’s what we’re seeing today. He noted, “Markets go down five times faster than they go up… That’s why I saw this amazing relaxation.” »

While reiterating that he still believes that Bitcoin and cryptocurrency are sustainable assets that “will last,” the CEO of BlackRock said:

I think there is a healthy re-calibration going on. The question is how far will the re-calibration go.

When asked about the prices of major cryptocurrencies, he admitted that for cryptocurrencies: “It is very difficult when there is no real intrinsic value. So what is it worth? It is worth what the next person will pay.”

He continues, “My feeling, in all of these situations, is that you’re over the edge, and my opinion is that you probably have some downsides from there. But it’s hard to say a fair value.” BlackRock’s chief investment officer added:

My feeling is that, like many assets, if you look two or three years from now, it will be higher than it is today.

“But it can be overridden on the downside. It’s hard to understand, just like gold, because I can’t tell my free cash flow multiples and what the security is underneath,” he concludes.

Reader has made some pro-bitcoin comments in the past. In November 2020, he said that cryptocurrencies are here to stay, noting that bitcoin could replace gold. He also said that bitcoin is “more efficient than trading a piece of gold”. In September of last year, he revealed that he had a “little piece of bitcoin,” noting that “I love volatile, bullish-convex assets. I could see bitcoin going up significantly.”

What do you think of the comments from BlackRock’s chief investment officer? Let us know in the comments section below.

Latest articles by Thomas Estimbre (see everything)

Leave a Reply

Your email address will not be published.