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(Kitco News) With bitcoin nearing its all-time high of nearly $ 20,000 for the first time in three years, the world’s largest asset management firm Blackrock says the popular cryptocurrency could one day replace gold.
“Do I think it’s a durable mechanism that could take the place of gold to a great extent? Yes, I do, because it is much more functional than passing a gold bar around,” said Rick Rieder, BlackRock’s chief investment officer. . he told CNBC in an interview last week. “I think the digital currency and the receptivity – particularly the millennial receptivity – of technology and cryptocurrency are real. Digital payment systems are real, so I think bitcoin is here to stay.”
Bitcoin once again took many by surprise this fall. Investors are jumping aboard the crypto train as markets are busy solving the tug-of-war between positive vaccine hopes and fears of the second wave of coronavirus.
At the time of writing, bitcoin was confidently making its way to $ 20,000, the latest trade at $ 19,180.30, up 0.26% the day after hitting over $ 19,300 earlier in the day. Since the lows in March, bitcoin has risen nearly 320%.
Other altcoins have also rallied alongside bitcoin, including Ether and Ripple (XRP). Ether breached the $ 600 level this week, rising about 350% year to date, while XRP managed to hit $ 0.78, the highest level in two years.
According to some analysts, adoption and wider acceptance are the key behind the huge rise in cryptocurrencies.
Bitcoin has received a number of endorsements from large companies around the world, including Citibank’s prediction that bitcoin could exceed $ 300,000 by December 2021.
Arguably the biggest crypto news of the year came in October when PayPal announced it would be introducing a service that would allow its customers to buy, hold and sell cryptocurrency directly from their PayPal account. The cryptocurrencies initially supported by the service include bitcoin, ethereum, bitcoin cash and lite coin.
“The shift to digital forms of currency is inevitable, bringing with it clear benefits in terms of financial inclusion and access; the efficiency, speed and resilience of the payment system; and the ability for governments to quickly disburse funds to citizens,” he said. Dan Schulman, president and CEO, PayPal. “We look forward to working with central banks and regulators around the world to offer our support and to make a significant contribution to shaping the role that digital currencies will play in the future of global finance and trade.”
Last week, crypto hedge fund Pantera Capital wrote in a letter to investors that PayPal and Square’s Cash app bought 100% of the new bitcoin supply. The hedge fund also said it considers the bitcoin rally to be more sustainable than that of 2017.
“As other larger financial institutions follow suit, the supply shortage will become even more unbalanced,” the crypto hedge fund said. “The only way supply and demand balance is at a higher price.”
Bloomberg Intelligence said it won’t rule out $ 40,000 bitcoin as early as next year, citing mainstream adoption.
“Bitcoin, the digital version of gold but with a more limited supply and a history of adding zeros, appears to be in an early stage of price discovery and may simply continue its rise into 2021,” Mike said last year. McGlone, Bloomberg Intelligence week senior commodity strategist. “If the future rhymes with the post-halving years of 2013 and 2017 and we calculate the maturity of about a quarter of the advance of 2017, Bitcoin could reach $ 40,000 in 2021.”
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee this accuracy. This article is for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no liability for loss and / or damage resulting from the use of this publication.
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