According to the Chief Investment Officer of BlackRock, Rick Rieder, Bitcoin (BTC) will replace gold on a much larger scale, mainly because of its much robust functionality and accessibility compared to gold bars. He adds that Bitcoin is here to stay, and going by its current trajectory, it may soon overtake the overall value of gold itself.
Rieder then stated that modern people’s interest in cryptocurrencies and blockchain technology is real, as evidenced by the majority of central banks now trying to develop CBDCs for their own.
Bitcoin is now highly considered as the digital equivalent of gold because of its unique store-of-value and inflation-resistant characteristics. Bitcoin enthusiasts strongly believe that the crypto has the innate potential to soon take over the sizable portion of traditional gold’s market cap, especially now that investors recognize its usefulness. Notably, BTC’s current market value flirts around the $18,000 mark, meaning that 1 BTC today can trade directly to 9.961 ounces of gold.
That being said, BlackRock’s CIO clarifies that he is particularly not a Bitcoin bull, nor does he have a sizeable holding to warrant his bold claims. He is just stating his observations and genuine opinion towards the concept – and many now share his sentiments.