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Bitcoin Is Here to Stay as BlackRock Adds Layer of Legitimacy

Published 09/08/2023, 11:31
Updated 09/08/2023, 11:45
© Reuters.  Bitcoin Is Here to Stay as BlackRock Adds Layer of Legitimacy
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  • David Rubenstein, co-founder of The Carlyle Group, says, “Bitcoin is going to be around for a while.”
  • BlackRock’s interest in Bitcoin ETF signals cryptocurrency’s legitimacy.
  • Bitcoin’s role as cross-border exchange and store of value discussed.

Renowned investor and co-founder of The Carlyle Group, David Rubenstein, has expressed his belief in the enduring nature of Bitcoin. During a recent interview with Bloomberg, he underscored the shifting attitudes of financial powerhouses, such as BlackRock, towards the cryptocurrency.

Rubenstein pointed to the recent development where BlackRock, led by CEO Larry Fink, has shown interest in launching a Bitcoin exchange-traded fund (ETF), subject to government approval. This move, according to Rubenstein, could mark a substantial validation of Bitcoin’s place in the financial realm.

If the mighty BlackRock is willing to have an ETF in Bitcoin, maybe Bitcoin is going to be around for a while.

Acknowledging the varied responses that Bitcoin has garnered over time – from mockery during value drops to triumph during surges – Rubenstein accentuated that the recent move by BlackRock adds a layer of legitimacy that cannot be ignored.

Rubenstein further traced Bitcoin’s journey from its early days, reminiscing about the days when Bitcoin was worth a mere $100 per unit. With Bitcoin’s value now hovering around $29,000, Rubenstein acknowledged that those who entered the market at its inception had reaped substantial rewards.

Despite its fluctuations, Rubenstein emphasized the appeal of Bitcoin beyond the United States. He mentioned that many individuals worldwide view cryptocurrencies as a way to transact privately, shielded from government oversight.

The interview also delved into regulatory concerns, including U.S. SEC Chair Gary Gensler’s cautious stance on cryptocurrencies. However, recent legal setbacks, such as the Ripple case, have shown that the SEC’s arguments are not invincible.

The conversation concluded by exploring Bitcoin’s potential roles as a medium of cross-border exchange and a store of value. Rubenstein discussed the attractiveness of cryptocurrencies, especially during periods of low-interest rates, as alternatives for obtaining stable returns.

Ultimately, Rubenstein suggested that the longevity of Gensler’s tenure as SEC Chairman could be uncertain, pointing to the strategy of “weighing out” regulators who might oppose certain financial innovations.

The post Bitcoin Is Here to Stay as BlackRock Adds Layer of Legitimacy appeared first on Coin Edition.

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