14Rick Rieder, who is the world’s biggest asset management company’s Chief Investment Officer has been optimistic about Bitcoin and believes that Bitcoin’s value boom is waiting around the corner. He thinks that there is going to be a rapid surge in the value of Bitcoin which will increase Bitcoin’s value significantly.
Blackrock company is, for the time being, the world’s biggest company involved in the business of asset management. Rick Rieder has is working with Blackrock in the capacity of Chief Investment Officer (CIO) whose responsibility is to look at Global Fixed Income. Apart from looking at the affairs of Global Fixe3d Income, he is also heading Blackrock’s Fundamental Fixed Income project as well.
Rieder was recently interviewed by CNBC in which he discussed the lead crypto coin i.e. Bitcoin. He was asked questions about Bitcoin’s adoption in the country of El-Salvador under the “legal tender” as well. While responding to the interviewer’s questions, he firstly commented on Bitcoin and said that he has two-fold opinion with regard to Bitcoin.
Firstly, he thinks that Bitcoin is something in between a hedge and an alternative. However, he cannot determine the difference between the two because of Bitcoin’s co-relation with equities and yet there are risks as well. On a certain day, the value of Bitcoin can sharply increase to 15% and on the next day it can decline sharply, he suggested.
As for Bitcoin being an “alternative”, he said that he owns a small portion of Bitcoin because he doesn’t wish to invest hefty amount in it. However, assets with high volatility factors are according to his liking so he would not mind investing a small portion of his wealth.
He then told that even his company too has a fair amount of Bitcoins available to it, held for long term basis. He once again reiterated his opinion by suggesting that Bitcoin isn’t any “core” asset because of its volatility factor. It is entirely different from traditional assets such as stocks or even bonds.
But he is very optimistic about Bitcoin and its future price fluctuations. He said that according to his personal analysis, Bitcoin value boom is waiting in the corner and is likely happen soon. He is hoping that the value of Bitcoin would increase significantly over and above the prevailing price threshold.
According to Rieder, the most valuable factor for the boom to happen is the adoption of Bitcoin by El-Salvador. He says that because Bitcoin is going to be used as a national currency therefore its usage would increase exponentially.
Resultantly, there would be high demand for Bitcoins while the supply would continue to remain on the high side as well. In the end, he opined that it is good time for people to invest in Bitcoins because of power-boosting factors he explained.