BlackRock CEO reiterates Bitcoin is digital gold and a hedge against economic uncertainty
BlackRock CEO Larry Fink reaffirmed his supportive stance on Bitcoin, describing it as digital gold and emphasizing its potential as a key asset in diversified investment portfolios.
Fink made the statement during a July 15 CNBC interview. His latest endorsement comes on the heels of BlackRocks robust second-quarter earnings, which surpassed analysts expectations. The firm has reported record results for the first half of the year.
The iShares Bitcoin Trust (IBIT), BlackRocks Bitcoin investment vehicle, attracted $4 billion in new assets during the second quarter. This addition significantly contributed to BlackRocks overall assets under management (AUM), which grew 13% year over year to a record $10.6 trillion.
Bitcoin offers financial control
During the interview, Fink acknowledged his initial skepticism toward crypto and explained how his perspective has evolved. He said he now views Bitcoin as a legitimate financial instrument that can provide uncorrelated returns, especially during times of economic uncertainty.
Fink said:
I believe Bitcoin is legitimate.
He also emphasized Bitcoins role in offering financial control, particularly in countries where currencies are being debased due to excessive deficits.
He added that in countries where people are fearful of their economic future, Bitcoin offers a way to invest in something outside their countrys control, thereby gaining more financial control of their assets.
The BlackRock CEO said:
I believe we have countries where youre frightened of your everyday existence and have an opportunity to invest in something that is outside your countrys control. Then you can have more financial control.
Despite his optimism, Fink warned that Bitcoin should be seen as a hedge rather than a hopeful investment. He stated that Bitcoin is more suitable for those who are cautious about the world economy and their financial existence.
Fink also highlighted the industrial applications of Bitcoin, noting that many people are overlooking its potential beyond being a mere financial asset. He said:
I believe theres a great industrial use for it. And I think a lot of people are missing that.
From skeptic to advocate
The endorsement marks the latest chapter in Finks evolving view of crypto and is a significant shift from his earlier views.
In 2017, he referred to Bitcoin as an index of money laundering, reflecting a deep skepticism about the flagship cryptos role in finance. However, his stance began to change as he acknowledged Bitcoins potential to become a global market and a significant asset class.
In recent years, Fink has expressed increasing optimism about Bitcoin, noting its growing market liquidity and transparency. He has also pointed out that Bitcoin could challenge the US dollars status as a reserve currency, capturing the attention and imagination of younger investors.
The BlackRock CEOs statements, coupled with the firms strong financial performance, highlight the evolving perception of Bitcoin as a credible investment option. As leading financial institutions continue to embrace Bitcoin, its legitimacy and adoption will continue to grow.
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Text source: CryptoSlate
