BlackRock Exec. Touts Bitcoin’s Appeal to Millennials as the Asset’s Key to Longevity ByJimmy AkiPRO INVESTOR Updated: 18 August 2021 Bitcoin is still rising and could eclipse the all-time high before 2020 winds to a close. Like all bullish runs, this one has brought the conversation of the asset’s long-term viability. Rick Reider, the Chief Investment Officer of fixed assets at BlackRock has also weighed in on the debate. Time for Gold to Look Out Speaking with CNBC, Reider, whose firm handles over $7 trillion in assets under management, explained that Bitcoin is here to stay. The investment expert pointed to the digital assets’ appeal to millennials, explaining that their openness to it means that it would remain a fixture in the financial space for the foreseeable future. Reider added that Bitcoin could eclipse gold in market cap over the next few years. Besides millennial appeal, he explained that the asset is a more durable medium for trade than gold. “I think cryptocurrency is here to stay. I think it is durable, and you’ve seen the central banks that have talked about digital currencies. I think digital currency and the receptivity — particularly millennials’ receptivity — of technology and cryptocurrency is real. Digital payment systems is real, so I think bitcoin is here to stay.” Reider’s comments echo a similar sentiment from investment banking giant JPMorgan. Last month, the company published its Global Markets Strategy, where it included a section dedicated to Bitcoin’s potential against gold. As a summary on Business Insider notes, millennials’ attraction to Bitcoin meant the asset would remain an essential fixture of investment portfolios going forward. The analysis pointed out that gold exchange-traded funds (ETFs) and bars hold about $2.6 trillion in market cap. On the flip side, Bitcoin’s market cap sits at just $240 billion. However, all of that could change soon. Despite the large gap, JPMorgan explained that Bitcoin could eventually match gold in the coming years. The firm gave three primary reasons for this bullish stance, focusing primarily on millennials’ acceptance and Bitcoin’s higher utility than gold. With the recent acceptance from PayPal, millennials now have another channel through which they can spend their digital assets. Institutions Deserve Credit Too While millennials are carrying the hope for Bitcoin’s future, it’s also worth noting a class of investors pouring into the market in their numbers – institutions. Large-net-worth individuals, public firms, and more have been partially responsible for the current rally as their demand for Bitcoin has surged in the past year. Grayscale Investments, the crypto industry’s largest asset management firm, now has over 15,000 BTC in its Bitcoin Investment Trust. At the current rate, estimates believe that the firm could hold up to 500,000 BTC in total assets under management – 2.7 percent of the total Bitcoins in circulation/. There are also firms like business intelligence solutions provider MicroStrategy, which converted about $425 million in assets to Bitcoin between July and August. Payment processor Square made a similar move, converting one percent of its total assets – about $50 million at the time – to the leading cryptocurrency.