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BlackRock Chief Investment Officer assesses Bitcoin’s long-term potential


Evaluate the future of BTC

Rick Rieder, CIO of BlackRock, the largest asset manager, called the crypto asset (virtual currency) Bitcoin (BTC) a “durable asset” and evaluated its long-term potential.

Bitcoin was mentioned as an asset class in an interview with US media CNBC.

Recently, in response to Tesla’s BTC settlement cancellation turmoil, discussions on environmental issues such as carbon dioxide emissions related to virtual currency mining have reignited. The pros and cons of BTC mining are being questioned both inside and outside the industry.

In this regard, Chief Investment Officer (CIO) Rieder said that mining issues are “one of the challenges Bitcoin should overcome.” In addition to mining, high volatility (price volatility), regulatory status, and the impact on legal tender are hampering the situation, and it is said that it cannot be a “mature asset class” at this time.

However, he said that such issues could be overcome eventually, and described Bitcoin as a “durable asset.” The outlook was as follows.

It will remain part of the investment target for years to come.

Entering the virtual currency market

“We have a cautious and extremely small position,” Rieder said, explaining that BlackRock has already begun to enter the Bitcoin market.

BlackRock is the world’s largest asset manager, managing approximately $ 9 trillion in client assets. In April of this year, it was revealed that CME (Chicago Mercantile Exchange) Bitcoin futures were purchased as of January.

On the other hand, since he is one of the world’s leading institutional investors, he is also cautious. CEO Larry Fink, who spoke at CNBC last month, said cryptocurrencies “may be a great asset class in the future,” but said he was more interested in climate change at this stage. “The interest in cryptocurrencies is still low,” he said to the company’s customers, who emphasize long-term investment.

Previously skeptical financial institutions, Goldman Sachs, Morgan Stanley, Citibank and others have begun to consider cryptocurrency services in response to “customer demand.”

Relation:Entering Bitcoin-related services one after another, summary of notable “institutional investors” trends


Author: Noah Sakamaki
Reference: CNBC

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“Cryptocurrency” means “cryptographic assets”

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