{"id":12860,"date":"2022-06-18T22:14:09","date_gmt":"2022-06-18T22:14:09","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bitcoin-and-crypto-are-durable-assets-prices-will-move-higher-markets-and-prices-bitcoin-news\/"},"modified":"2022-06-18T22:14:09","modified_gmt":"2022-06-18T22:14:09","slug":"bitcoin-and-crypto-are-durable-assets-prices-will-move-higher-markets-and-prices-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bitcoin-and-crypto-are-durable-assets-prices-will-move-higher-markets-and-prices-bitcoin-news\/","title":{"rendered":"Bitcoin and Crypto Are Durable Assets \u2014 Prices Will Move Higher \u2013 Markets and Prices Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The chief investment officer of global fixed income at Blackrock, the world\u2019s largest asset manager, says bitcoin and crypto are durable assets. \u201cI think there\u2019s a healthy recalibration going on,\u201d he said, noting that \u201cif you look two to three years hence, they will be higher than today.\u201d<\/strong><\/p>\n

Blackrock\u2019s Executive on Bitcoin and Crypto<\/h2>\n

Rick Rieder, chief investment officer (CIO) of global fixed income at Blackrock, shared his view on bitcoin and cryptocurrency in an interview with Yahoo Finance Live on Thursday. Blackrock is the world\u2019s largest asset manager with about $10 trillion in assets under management (AUM).<\/p>\n

Rieder was asked how the crypto market is going to react as the Federal Reserve begins tightening aggressively. The Fed hiked<\/a> its benchmark rate by 75 basis points this week \u2014 the largest increase since 1994.<\/p>\n

The CIO explained: \u201cI think people underestimate. When you leave rates at such low levels for such an extensive period of time \u2026 when you keep policy too easy, the leverage builds in the system slash \u2018how do I capture return quickly\u2019 \u2014 and you are seeing a lot of the leverage that was built up around crypto come unglued pretty darn quickly.\u201d<\/p>\n

However, he emphasized:<\/p>\n

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I still think bitcoin and crypto are durable assets. It\u2019s a durable business, but there was so much excess built around it.<\/p>\n<\/blockquote>\n

Rieder described: \u201cIt\u2019s not terribly dissimilar from the internet bubble \u2026 if you go back to the \u201999 and 2000, was the internet a bad idea? No, it wasn\u2019t a bad idea. But you created so much excess around it and you just have to de-gear that dynamic, and I think we are seeing that today.\u201d He noted: \u201cMarkets go down five times faster than they go up \u2026 That\u2019s why you were seeing this incredible unwind.\u201d<\/p>\n

While reiterating that he still thinks bitcoin and crypto are durable assets that are \u201cgoing to go on,\u201d the Blackrock executive opined:<\/p>\n

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I think there\u2019s a healthy recalibration going on. It\u2019s a question of how much that recalibration is going to go.<\/p>\n<\/blockquote>\n

When asked about the prices of major cryptocurrencies, he admitted that for crypto: \u201cIt\u2019s pretty hard when there is no true intrinsic value. So, what is it worth? It\u2019s worth what the next person will pay.\u201d<\/p>\n

He continued: \u201cMy sense is, in all these situations, you overshoot, and my guess is you have probably got some downside to go from here. But it\u2019s hard to say what fair value is.\u201d The Blackrock chief investment officer further shared:<\/p>\n

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My sense is like a lot of assets, if you look two to three years hence, they will be higher than today.<\/p>\n<\/blockquote>\n

\u201cBut it could overshoot on the downside. This is hard to figure out, just like gold, because I can\u2019t figure out my free cash flow multiple and what my security is underneath it,\u201d he concluded.<\/p>\n

Rieder has made some pro-bitcoin comments in the past. In November 2020, he said cryptocurrency is here to stay, noting that bitcoin could replace gold<\/a>. He also said BTC<\/a> is \u201cso much more functional than passing a bar of gold around.\u201d In September last year, he revealed that he owns \u201ca small piece of bitcoin,\u201d emphasizing<\/a>: \u201cI like assets that are volatile that have upside convexity. I could see bitcoin go up significantly.\u201d<\/p>\n

What do you think about the comments by Blackrock\u2019s chief investment officer? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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