Rick Rieder, head of investment at BlackRock, believes bitcoin has good potential, but there are still many obstacles to overcome.
In his interview, Reeder said that due to the high volatility of Bitcoin, it is too early to call it a “mature” asset that can be widely used as a means of payment. In addition, the first cryptocurrency has opponents who are worried about the growing consumption of electricity and carbon emissions from Bitcoin mining.
For example, Tesla CEO Elon Musk recently stated that “Bitcoin is too expensive for the environment.” After Musk’s remarks, the BTC rate fell to $ 46,000, although then it recovered to $ 50,000. However, Reeder is confident that in the coming years, bitcoin will become an integral part of the “investment arena.”
“I think bitcoin can be called a ‘durable’ asset. But today he faces different problems. These are issues related to regulation, volatility, environmental impacts and interactions with fiat currencies. Over time, bitcoin will overcome all obstacles, ”said Reeder.
Reader said BlackRock has started to play with bitcoin little by little. The firm recognizes that many investors are willing to hold digital assets in addition to regular money. Moreover, many large companies have already made Bitcoin part of their investment portfolio. However, in April, BlackRock CEO Larry Fink said he did not see widespread demand for Bitcoin from the company’s institutional customers.
Earlier, Reeder said that the first cryptocurrency could surpass gold in many respects, and the cryptocurrency industry would develop rapidly.
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