Bitcoin could have significant gains

Rick Rieder, the CIO of Blackrock, the world’s largest asset manager with over $9.5 trillion in assets under management, commented on Bitcoin during an interview question regarding his perception about the cryptocurrency, which is an official currency in El Salvador since last week.

According to Rieder, he is not certain if cryptocurrencies are a good hedge taking into account their correlation to equities and other asset groups. However, he mentioned that Blackrock keeps a very moderate amount of cryptocurrency in its portfolio, and he personally likes volatile assets having upside convexity and can go up significantly and thinks having a small amount of this speculative asset is valuable.