BlackRock CEO Larry Fink believes that Bitcoin (BTC) has the potential to become a widely accepted storage asset.
Laurence Fink, CEO of Blackrock, the world's largest wealth manager, argued that the cryptocurrency sector has yet to become established. He went on to explain that Bitcoin could become a good store of value. The CEO of the $ 7 trillion investment management firm gave his opinion in a interview with Bloomberg. He claimed that the price of BTC was fluctuating a lot. For this reason, he is of the opinion that the crypto asset is not suitable for "quiet" investors.
“It is not a calm market. So far it has not been tested. We look at him, we enjoy the conversation. But it hasn't been established yet, ”he said.
The CEO insisted that he was aware of the hype surrounding cryptocurrencies, particularly bitcoin, and attributed it to media coverage. Fink claimed that a lot of people are drawn to crypto assets because the media is now making the crypto sector a big deal.
He explained the different views of the asset: the view of investors and commercial media. According to Fink, the latter sees a great future for digital wealth and wide acceptance. Investors, on the other hand, are focused on its value and are excited to see the currency develop as a store of wealth.
The billionaire businessman claimed that the market for Bitcoin and other cryptocurrencies would have to grow in order to finally succeed. In this way, investors can “invest large sums of money without changing the value of bitcoin". The long-term viability of the asset is questionable as Bitcoin has yet to be tested.
Fink is confident that some form of digitized currency will be needed in the near future to shape the global financial landscape. He said it could be an asset that currently exists, or even an asset that doesn't exist yet.