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BlackRock money manager Turnhill says there is no basis for Bitcoin price, echoing CEO’s earlier comments.
Richard Turnhill, the strategist for BlackRock Financial and therefore the largest money manager in the world, owns no Bitcoin, and doesn’t know what a fair price would be. According to a recent interview, the analyst was quick to point out that commodities prices are based on inherent value, and he sees none in cryptocurrencies.
The interview includes bullish predictions on effectively everything, from equities to stocks, with the final statement about Bitcoin being the only relatively negative comment. Turnhill made is clear that his position is one based on research. Per the interview:
“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'm an investor, I like to think about the fair value of stocks of bonds. I can't answer what's the fair value for bitcoin or any cryptocurrency. For that reason, I'm not an owner.”
The information from Turnhill reflects statements made last week by Larry Fink, BlackRock’s CEO, who said that Bitcoin was essentially only good for money laundering. Nonetheless, bulls point to the continued price increases, and other stock analysts see substantial gains ahead.
While the rising price is certainly good, in the short term, long term increases in value will come as more people begin to understand the nature of Bitcoin, consensus systems, and how value is defined.
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