- Larry Fink believes cryptocurrency can “become a great asset class”.
- It might seem fascinating, but “crypto as a substitute of currency” isn’t a feasible option.
- BlackRock can’t see much success in the current short-term profit-focused crypto-market, but it’s still warming up to it.
The CEO of NYC-based American multinational investment management corporation BlackRock, Larry Fink, evaluated that crypto-assets like Bitcoins have great potential but can’t replace fiat currency.
Bitcoin Fascinates Fink
In an interview with CNBC on Thursday, the billionaire CEO of the world’s largest asset manager that manages around $9 trillion in assets worldwide said he’s “fascinated” by Bitcoins. “Encouraged” by people’s ever-rising interest in the digital asset, the former Bitcoin skeptic sang its praises. Larry Fink believes cryptocurrency can “become a great asset class”, though, he revealed, BlackRock’s investors haven’t shown much interest in it yet.
Converted Stance on Crypto
Back in 2017, Flink labelled Bitcoin as just an “index of money laundering,” saying Bitcoin is just a tally of “demand for money laundering” globally. Yet his previous, not-so-positive stance on cryptocurrencies started changing before December, and in January, his firm even submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to invest in Bitcoin futures. BlackRock, acknowledging climate change, is officially shifting to a sustainability-focused investment strategy.
Crypto Can’t Replace Currency
However, the CEO worth over $1.1 billion doesn’t “believe it’s a substitute for currencies.” In his opinion, currencies like the dollar might get their cryptocurrencies, but no matter how fascinating it seems, “crypto as a substitute of currency” isn’t a feasible option.
On the same day in its quarterly financial result, Fink said, “BlackRock’s success” equates with its “focus on long-term investment,” which the current cryptocurrency market, focused on short-term profits, can’t offer. Still, his firm is warming up to the crypto-biz, as evident from their March reveal of making 37 futures contracts with the Chicago Mercantile Exchange.
Bottom line: BlackRock and its CEO are “still watching”. “Investing”, “studying”, and simultaneously making “money”; still learning!
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