“Bitcoin will take the place of gold”

Key facts:

According to Rick Rieder, bitcoin is durable and more functional than gold.

Bitcoin has the advantage of its acceptance among millennials, says Rieder.

Rick Rieder, Director of Investments at asset management firm BlackRock, believes that Bitcoin will end up gaining ground for gold in the investment world. This was stated by the executive during a television interview this Friday, November 20.

According to Rieder, bitcoin will end up taking the place of gold and it has characteristics that will make it possible. “Do I think it is a durable mechanism that will take the place of gold on a large scale? Yes, “said the executive during an interview with the US network CNBC.

One of the main reasons, assured the representative of BlackRock, is the ease of transferring value using the cryptocurrency created by Satoshi Nakamoto. “It is much more functional than passing a gold bar from one side to the other,” he said about it.

For Rieder, it is clear that bitcoin and other cryptocurrencies will remain on the stage for the long term. On that statement, the executive reflected on the acceptance that bitcoin has had in its short existence. “The receptivity towards cryptocurrencies, mainly among millennials, is real. Bitcoin is here to stay, “he said.

BlackRock, an asset management firm founded in 1988, provides “investment management, risk management and advisory services for institutional, broker and retail clients around the world.”

By the end of September, this organization had under its custody more than 7.81 billion dollars, according to records of the company itself on its website.

Investment and institutional interest, spearhead of the bitcoin bull market

The interest expressed by the executive of the firm coincides with the most recent institutional attitude towards Bitcoin. In just a few months, we have seen companies like MicroStrategy or Square investing part of their assets in the main cryptocurrency on the market.

Meanwhile, cryptocurrency investment firm Grayscale reached a new milestone just a few days ago: its fund already exceeds 500,000 bitcoins in escrow, equivalent to more than $ 9.26 billion, based on the current bitcoin price. At the time of writing, the coin is trading at about $ 18,521, based on CoinMarketCap data.

Various analysts consider that precisely this impulse of institutional interest has been a catalyst for the new bull run experienced by the bitcoin market in recent weeks, recovering levels that were not seen since 2017, when the historical maximum was reached, close to 20,000 Dollars.

On the other hand, there are those who consider that bitcoin is establishing itself as a safe haven asset for investors, As the renowned metrics analyst Willy Woo recently assured, quoted by CriptoNoticias.

In tune with Rieders’ stance, JP Morgan has recently modified its views on bitcoin. As this outlet reported, a bank bulletin published at the end of October referred to the strengths of cryptocurrency to compete with gold in the long term. The main reason? Millennials, as the BlackRock executive reflected on this occasion.