A senior executive at BlockRock, the world’s largest asset manager, admits that Bitcoin (BTC) has become a permanent part of the global financial system, offering another tangible sign that the narrative surrounding digital currency has changed.
Rick Rieder, CIO of Fixed Income at BlackRock, Told TBEN Friday that “Bitcoin is here to stay.”
While conceding that he is not a Bitcoin bull, Rieder said that the flagship currency “will largely replace gold. [because] it’s so much more functional than spending a gold bar.
Bitcoin is sometimes referred to as “digital gold” because of its unique store of value characteristics. Bitcoin’s most ardent supporters believe it will eventually take a significant chunk of gold’s market capitalization as more investors realize its usefulness.
Priced in gold, 1 Bitcoin is currently worth 9.961 ounces.
2020 could be the year that the main Bitcoin narratives changed, especially among institutional investors who have long been skeptical of digital currencies. Investors like Paul Tudor Jones and Stanley Druckenmiller have thrown their weight behind Bitcoin, while big banks like Citigroup and JPMorgan have posted positive guidance on the flagship cryptocurrency.
On the business side, it is estimated that businesses hold 4.54% of the total Bitcoin supply, which equates to around $ 15.3 billion at current prices.
BlackRock, meanwhile, has indirect exposure to Bitcoin through its stake in MicroStrategy, a business intelligence firm that converted most of its cash reserves to BTC earlier this year.