The “Interesting” and “Unbeatable” Bitcoin, Capital Management Boss BlackRock Backs Bitcoin

Bitcoin is an interesting asset, I think it’s a hold and durable, and it will be part of the investment landscape for years to come.

The "Interesting" and "Unbeatable" Bitcoin, Capital Management Boss BlackRock Backs Bitcoin

Yesterday crypto investors suffered another “waterfall” washout, as Musk tweeted that Tesla was suspending bitcoin payments, and the market plunged in response, with bitcoin once plummeting to near $45,000. The market was injected with a tranquilizer.

The energy issue is the killer for most opponents of bitcoin. According to data, the annual power consumption of the Bitcoin network is estimated to be 129 terawatt hours (TWh) on March 18, 2021. If Bitcoin were viewed as a country, it would rank 29th out of a theoretical 196 countries, slightly higher than Norway’s 124 TWh consumption.

U.S. Treasury Secretary Janet Yellen has described bitcoin as “an extremely inefficient way to transact” and said “the amount of energy consumed to process these transactions is staggering.

However, Rick Rieder, chief investment officer at asset management giant BlackRock, believes that leading crypto is not going nowhere and will always be around.

Asked on CNBC’s “Squawk Box” on Thursday what he thought of Musk’s big announcement, Rick Rieder said bluntly, “Bitcoin is an interesting asset, I think it’s a hold and durable, and it’s going to be part of the investment landscape for years to come.

Rieder also noted that bitcoin has not yet matured into a “normal, stable” asset, and that volatility and regulatory issues are major hurdles that must be overcome, saying, “These challenges are real, and I think they will be overcome over time.

BlackRock has already begun testing the waters of the bitcoin market. A previously public SEC filing showed the money management giant approved two of its funds to trade bitcoin futures in January and had held $6.5 million in CME bitcoin futures contracts earlier in the year, when bitcoin prices soared to a record high of $52,000.

Chief Executive Officer Larry Fink told CNBC in April that cryptocurrencies could morph into “a great asset class.”

Tumblr major MicroStrategy has given itself plenty of ammunition for this shakeout again, buying 271 bitcoins for another $15 million in cash, at an average price of about $55,387 per bitcoin and an average cost of $24,403 for the total position.

CEO Michael Saylor has repeatedly slammed the notion that Bitcoin consumes energy, responding to that Musk tweet: “Ironically, there is no incremental energy used in Bitcoin transactions. That energy is used to protect the crypto network and, all things considered, the net impact on fossil fuel consumption over time will be negative.”

Interestingly, Sun Yuchen did not forget to advertise Wavefield in his reply, “I hope Musk considers and does some research on TRON, he will find that we have an amazing energy saving platform …. I hope he will join our community!”

Bitcoin is currently bouncing mildly above $50,000, compared to several previous selloffs, and the depth of this shakeout may look merely hairy in the future, according to Bitpush data.

Posted by:CoinYuppie,Reprinted with attribution to:
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