The primary financial CIO (Chief Investment Officer) of Blackrock, Rick Rieder, shared his sentiments about cryptocurrency and bitcoin while interacting with Yahoo Finance last Thursday. The organization has about 10 trillion USD in AUM (Assets under Monitoring).
What does the Blackrock CIO think about crypto and bitcoin?
Rieder revealed his thoughts about the crypto space while speaking to Yahoo Finance last week. He also spoke about the recent hike in the interest rate by the Federal Reserve. Rieder also elaborated on the hike’s effect on crypto.
According to the executive, if these rates of interest are allowed to be at low levels when the policies become more lenient or for a longer period, there is a lot of leverage. Blackrock is the largest asset manager in the world.
The publication asked him about his response to the crypto market while the Federal Reserve starts its stringent policies. For the uninitiated, the Fed moved up its benchmark rate by a whopping 75 basis points recently. It has been the highest hike since 1994.
Do not underestimate crypto
The CIO is convinced that people underestimate. There are apprehensions if the rates are low for an extended period or if the policy is too easy. People start wondering how they can capture returns promptly. At the same time, he believes that crypto in general and bitcoin, in particular, are durable assets. He thinks it is a durable business. However, there was so much extra built around it.
Rieder opined it is similar to internet bubble. In case someone travels back to 1999 and 2000, the internet did not use to be a bad idea. However, so much extra was created and one had to just de-gear the dynamic.
He still feels that crypto and bitcoin are durable assets, which will continue for a long period. Rieder also feels that the recalibration is going on is healthy.