BlackRock CIO on Bitcoin: There’s ‘Clearly Greater Demand than Supply’
As Bitcoin continues to hover around $23,000, everyone finds the leading digital asset valuable one way or the other.
Recently, Guggenheim Investments' Scott Minerd called for a $400,000 price target for Bitcoin driven by the digital asset’s scarcity and “rampant money printing” by the central banks.
According to BlackRock Chief Investment Officer, Rick Reider, putting a number on Bitcoin as a valuation is hard, but he said, “demand outstrips supply today.”
This especially holds true with all the money printing going on in the US and Europe, and other parts of the world. The Federal Reserve’s balance sheet has actually made a new record at $7.36 trillion this week.
“I think there is clearly greater demand than supply. I think it's a storehouse of value,” said Reider in an interview with Bloomberg.
“Millennials have definitely adopted Bitcoin as one of ways to get that store of value,” he said.
“I wouldn't say it should be this price or that price, I just don't know how you could determine that, but It does strike me it’s gonna be part of the asset sweep for investors for a long time.”
This is the second time Reider has shared bullish comments on the digital asset. Just last month, he said on CNBC that Bitcoin could replace gold in the future.
However, according to Goldman Sachs Group, Bitcoin and gold can co-exist despite the largest digital currency pinching some demand from the traditional safe-haven asset.
“I would argue that Bitcoin is the retail inflation hedge,” said Jeff Currie, head of commodities research at Goldman Sachs, in an interview with Bloomberg.