- Larry Fink, the CEO of BlackRock CEO praises Bitcoin and predicts a bright future for it
- He compared the original crypto with digital gold and expressed optimism ahead
- BlackRock is the world’s largest asset manager with $10 trillion in assets
BlackRock’s Larry Fink Praises Bitcoin
BlackRock chief executive officer Larry Fink praised Bitcoin for its properties as a decentralized cryptocurrency and projected a bright future ahead for it. Speaking in an interview with the media outlet CNBC, the senior executive said he is a major believer in Bitcoin and has positioned it right next to traditional assets in investors’ portfolios.
“I am a major believer that there is a role for Bitcoin in portfolios; I believe you’re going to see that as one of the asset classes we all look at. I look at it as digital Gold,” Fink said. It’s worth noting that not long ago, Fink was a major critic of Bitcoin but is now calling the orange token a “legitimate financial instrument.”
Michael Dell Joins the Pro-Crypto Team
He commented that everyone should hold Bitcoin, regardless of capital allocation or risk preferences. Those who want less risk exposure are advised to invest a smaller amount in Bitcoin. Vice versa, those who want more risk exposure could increase the size of their investment so that it matches the level of risk appetite they are looking for.
What’s more, the chief executive and founder of PC maker Dell, Michael Dell, reposted Larry Fink’s interview with CNBC. He kept it short by just saying “Fascinating Bitcoin.”
The two senior executives appear largely in favor of Bitcoin, and it shows. The price of the leading digital asset shot past $64,000 per coin early on Tuesday and has been flaunting a 10% gain over the past five days.
Trump’s Survival Helps Bitcoin
What helped buoy prices higher was an attempt on former President Donald Trump’s life. A shooter took aim at Trump and a bullet pierced his ear at a campaign rally over the weekend. Trump, who has been a vocal supporter of Bitcoin, survived the attack and with it, he raised his chances of taking the President’s seat in November.
Trump has previously said that he’s looking to introduce crypto-friendly regulations that will lower the entry barrier for consumers and businesses who want to participate in the digital asset market and invest, trade, buy, or sell.
Why is Bitcoin Considered Digital Gold?
With this said, why is Fink talking about Bitcoin as digital gold? To answer the question, let’s see what gold is. Gold is a safe-haven asset that investors prefer in times of uncertainty and fear in the market. It also acts as a hedge against inflation.
These characteristics are also attributed to Bitcoin. Some—including Larry Fink—see Bitcoin as digital gold because its limited supply of 21 million means that inflation won’t apply to it. Simply because the community cannot issue more tokens like central banks can issue more money, thus creating inflation, Bitcoin is also seen as a safe-haven asset because it’s largely not correlated to traditional markets.
