Larry Fink, CEO of BlackRock, the world's largest asset manager, expressed his strong belief in Bitcoin and its potential role in global portfolios in a recent interview with CNBC.
Fink, who was once skeptical of Bitcoin, admitted that his opinion has changed over the years. “I studied it, I learned about it. And then I said, okay, my idea five years ago was wrong,” he said. He now sees Bitcoin as a legitimate financial instrument offering potentially uncorrelated returns.
Fink suggested that Bitcoin could be a good investment for those who are concerned about countries running excessive budget deficits and devaluing their currencies. “I believe this is a tool you can invest in when you are more afraid,” he said.
He also highlighted Bitcoin's potential to provide financial control for individuals in countries where daily life can be intimidating. “I believe there are countries where you fear for your day-to-day existence and have the opportunity to invest in something that is beyond your country's control,” Fink said.
Fink sees an important role for Bitcoin in portfolios and believes it will become one of the asset classes investors look at. “I am one of those who believe there is a role for Bitcoin in portfolios,” he said. He also referred to Bitcoin as “digital gold” and suggested it could act as a hedge against the optimistic mood around the world.
Fink concluded his remarks by emphasizing the industrial use of Bitcoin, which he believes many people ignore. “And I believe there's a great industrial use for it. And I think a lot of people overlook that,” he said.
*This is not investment advice.