Rick Rieder, Chief Investment Officer at BlackRock Financial Management, rejects the decision of Telsa CEO Elon Musk to phase out Bitcoin as a means of payment.
In an interview with CNBC’s Squawk Box today, Rieder He said What Bitcoin (BTC) had “not yet reached maturity” and still had to overcome some hurdles, such as public perception of its energy consumption and price volatility. Although he didn’t specifically mention Musk’s claims that the crypto asset has a high cost to the environment, he said that BTC is not yet a normal, stable asset.
“I think it’s long-lasting,” said Rieder, referring to Bitcoin. “I think it will be part of the investment field in the years to come, but some of those challenges and the volatility that comes with it – regulatory dynamics, fiat currency versus cryptocurrency concerns […]- are real. You will have outgrown in time. “
“Bitcoin is an interesting asset. It is not yet fully developed,” said BlackRock @ RickRieder #btc #bitcoin. “I think it’s long-lasting. I think it will be part of the investment arena for years to come … but these challenges are real. They will be overcome over time.” pic.twitter.com/EentcYawQN
– Squawk Box (@SquawkCNBC) May 13, 2021
“Bitcoin is an interesting asset. It’s not yet fully developed,” said BlackRock’s @RickRieder #btc #bitcoin. “I think it’s long-lasting. I think it will be part of the investment arena for years to come … but these challenges are real. They will be overcome over time.”
Rieder said in February that Blackrock has “started looking into crypto a little,” admitting that sometimes investors would prefer digital assets to fiat.. His comments came after the billionaire wealth manager mentioned Bitcoin in two prospectus filings with the U.S. Securities and Exchange Commission. The filings suggest the possibility that BlackRock may use derivatives of Bitcoin and other assets as part of their investment plan.
Following Musk’s comments on Bitcoin’s environmental impact, the price of the cryptoasset fell below $ 50,000 for the first time in weeks. At press time, BTC is priced at $ 50,590 after falling 11% in the past 24 hours.