Rick Rieder, the Chief Investment Officer (CIO) at BlackRock, has said that Bitcoin can eventually replace gold as cryptos are much more functioning than passing a bar of gold around. The executive remarked CNBC’s Squawk Box on being asked if governments will start regulating bitcoin if its price continues rallying. Rieder’s uplifting remarks on Bitcoins came after Wall-street investors Paul Tudor Jones and Stanley Druckenmiller too offered positive sentiments on the cryptocurrency.
BlackRock’s CIO Believes Bitcoin Could Replace Gold
Although Rieder is not a bitcoin enthusiast and does not include much in his portfolios. He did say:
“I think cryptocurrency’s here to stay, I think it is durable.”
The executive further added that newer generations are comfortable in using digital technologies, and alternative payment methods are what makes the cryptocurrency to be even more appealing. Besides, the implementation of central bank digital currencies can eventually make people accustomed to Bitcoins and cryptocurrencies too.
While BlackRock doesn’t have stakings in Bitcoin, it does have indirect exposure to the cryptocurrency through its ownership in business intelligence firm MicroStrategy, which converted most of its corporate treasuring into Bitcoin earlier this year. The firm had purchased Bitcoins for around $10,000 resulting in a good amount of profit.
Corporations Holding 4.5% of Bitcoin’s Total Supply
Earlier this year, banking giants such as Citigroup and JPMorgan too issued positive statements on the king coin. It is estimated that major corporations are currently holding 4.5% of Bitcoin’s total supply, equivalent to around $15.5 billion at the current prices.
The world’s largest cryptocurrency by market capitalization is also sometimes referred to as “digital gold” for being a store of value. Bitcoin enthusiasts also have the same narrative that the cryptocurrency could replace a sizable portion of gold’s market capitalization as investors start realizing the value of the cryptocurrency.