Richard Turnhill, strategist at BlackRock Financial and as a result the largest money manager in the world, said that he owns no Bitcoin and that the fair value of it is unknown.
In a recent interview conversation, he emphasized that the commodities prices are based on inherent values of them. However, in case of cryptocurrencies, he could not see such a value.
Turnhill predicted a bullish trend of all financial products, from equities to stocks. Nevertheless, when the question came to Bitcoin, his prediction received the only relatively negative comment, based on his research. He said:
“I would say that cryptocurrencies show many characteristics of a bubble right now, which is [to say] you’ve seen spectacular price increases. The main argument for buying them is that prices have risen, and are therefore going to continue to rise over time.
But there’s no inherent right or wrong price for bitcoin. You could say ‘what’s the fair value?’ You know, I am an investor, and I like to think about the fair value of stocks of bonds. I cannot answer what the fair value of bitcoin or any cryptocurrency is. For that reason, I’m not an owner.”
The recent statement of Turnhill echoes last week one of Larry Fink, BlackRock’s CEO. Fink said that Bitcoin was mostly useful for money laundering.