Larry Fink, CEO of BlackRock, the world’s largest asset management company with $12 trillion under management, has made some important comments regarding Bitcoin (BTC).
Larry Fink has long argued that Bitcoin is not a legitimate asset, but has recently praised BTC.
Speaking at the New York Times’ Dealbook Summit yesterday, Fink answered a question from journalist Andrew Ross Sorkin about his views on cryptocurrencies and Bitcoin.
Fink recanted his previous skepticism about Bitcoin, admitting that his initial view was wrong.
Fink said Bitcoin is an important asset for portfolio diversification, comparing it to gold.
“My initial view on Bitcoin was wrong. I think Bitcoin can be used as a portfolio diversification tool.”
Larry Fink, who later described Bitcoin as a “fear asset,” argued that BTC is an asset that quickly reflects changes in the world’s geopolitical environment.
“Bitcoin reflects changing global tensions, and this shows how quickly perceptions in the crypto market can change,” Fink said, citing the decline during the U.S.-China trade war as an example.
BlackRock’s CEO made similar remarks in a previous statement, saying that Bitcoin is an important hedge against fiat currency devaluation, playing the same role as gold.
*This is not investment advice.