Rick Reeder, a top manager at the large investment company Blackrock, has suggested that Bitcoin will grow strongly in the near future, despite the recent drop in the cryptocurrency market.
Rick Rieder was featured on CNBC’s Squawk Box this week. In his
interview he named the reason why he owns a certain amount of bitcoin – it lies in its volatility. Reeder is convinced that volatile assets have a “positive bulge.”
This property is typical for non-option bonds, when their price growth in the event of a strong increase in interest rates will be greater compared to a fall in price with a decrease in interest rates. Despite the recent cryptocurrency market crash, Reader is optimistic. He believes that bitcoin will not stay at its current level for long, and its rate will rise significantly in the foreseeable future.
“I own a small amount of bitcoin and I really think that over time, more people will get into the fray. I love volatile assets and have seen Bitcoin take off before, ”Reeder said.
At the same time, he noted that bitcoin is not yet able to compete on equal terms with traditional assets such as stocks and bonds. However, Bitcoin can be considered a speculative instrument for diversifying the investment portfolio, which gives it a certain value.
Reeder previously stated that there are still many regulatory, volatility and environmental issues to overcome before Bitcoin becomes a “mature” asset.
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