The chief investment strategist for BlackRock, the worldâs largest asset manager, said in a new interview that he doesnât know where to peg the âfairâ price of bitcoin.
Speaking with Business Insider, Richard Turnill said that cryptocurrencies have experienced âspectacular price increasesâ in recent months, leading him to conclude: âI would say that cryptocurrencies show many characteristics of a bubble right now.â
His remarks echo those of other Wall Street-based analysts and investors, including Ray Dalio, who leads the worldâs largest hedge fund, that have argued that the cryptocurrency market is in bubble territory.
And while BlackRockâs own chief executive offered cautiously optimistic remarks earlier this month on the subject, Turnill argued that, in his view, thereâs no way to assess a âfair valueâ for bitcoin or other cryptocurrencies.
He told the publication:
âThe main argument for buying them is that prices have risen and are therefore going to continue to rise over time. But thereâs no inherent right or wrong price for bitcoin. You could say, âWhatâs the fair value?â You know: âIâm an investor; I like to think about the fair value of stocks of bonds.â I canât answer whatâs the fair value for bitcoin or any cryptocurrency. For that reason, Iâm not an owner.â
This is not the first time Turnill has expressed concern with cryptocurrencies. In July, he referred to the cryptocurrency market as âscaryâ based on then-recent market moves.
Despite his concerns about cryptocurrencies, however, Turnill praised blockchain technology in general, saying the tool will likely be increasingly used.
BlackRock has already begun âstarting to use blockchain,â according to BI.
Image via YouTube / Bloomberg TV