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Blackrock: Bitcoin to replace Gold in the longterm and is here to stay

  • BlackRock’s CIO, Rick Rieder, predicts the adoption of Bitcoin as a reserve asset that will take the place of gold in the long term.
  • Bitcoin’s adoption will be driven by its superior features and by new generations’ preference for investing in digital assets.

CNBC seems to be the platform on which many billionaires and fund managers have chosen to reveal their support for Bitcoin. There, legendary investors like Paul Tudor Jones and Stanley Druckenmiller have claimed to support Bitcoin. These investors see it as an enhanced version of gold. BlackRock investment firm CIO Rick Rieder has gone further.

In his interview for the program “Squawk Box”, Rieder said that Bitcoin is much better than gold. Therefore, he believes that the cryptocurrency will take the place of the precious metal in the long run. The BlackRock CIO added:

I think Bitcoin is here to stay. Am I a Bitcoin bull? I don’t do a lot of it or any of it in my corporate portfolios or business portfolios.

However, this could change quickly. Companies listed in the S&P500, such as MicroStrategy and Square, have already chosen Bitcoin as their reserve asset to hedge against dollar inflation. Caused by U.S. Federal Reserve policies, experts have predicted a possible decline in the dollar that could last up to 4 years.

BlackRock’s CIO has indicated that Bitcoin’s features make it an especially attractive investment for new generations. In that sense, portability, transparency, limited supply are the properties that give Bitcoin an advantage over the precious metal:

Do I think it’s a durable mechanism, do I think it will take the place of gold to a large extent? Yeah, I do, because it’s so much more functional than passing a bar of gold around

Bitcoin takes the place of gold

In the crypto community, the statements of BlackRock’s CIO were welcomed and are considered bullish. Morgan Creek Digital co-founder Anthony “Pomp” Pampliano shared the video interview with Rieder for his nearly 400,000 followers and got a mostly positive response. In response to Pomp, Bitcoin’s bull and former Goldman Sach employee Raoul Pal added

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.

Venture capitalist Meltem Demirors noted that BlackRock has about $7.8 trillion in assets under management. Therefore, an investment by the firm could have a positive impact on BTC’s price in the long term. MicroStrategy’s CEO also welcomed Rieder’s statements and agreed that Bitcoin will “eat the kingdom of gold.

The senior commodity strategist for Bloomberg Intelligence, Mike McGlone, has been bullish in his analysis of Bitcoin. Predicting an increase in Bitcoin’s price that will put it at $25,000 by the end of the year and $100,000 by 2024, McGlone believes that BTC’s growth potential is enormous:

Bitcoin – in Price-Discovery Stage – Isn’t a Store of Value, Yet; Bitcoin is on track to be a digital version of gold, but remains far from it in 2020. At just over a $300 billion market cap on Nov. 19, the benchmark crypto is tiny compared with the about $10 trillion gold mkt

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