Bitcoin is an Investment in Times of Fear: BlackRock CEO

In a recent interview, BlackRock CEO Larry Fink discussed his evolved view on Bitcoin, now seeing it as a legitimate financial product and an investment for times of fear.

Initially skeptical, Fink learned about Bitcoin and now believes in its role within a portfolio, likening it to digital gold.

This shift aligns with broader crypto-friendly sentiments, including those from Senator J.D.Vance and Donald Trump, potentially heralding a new era of cryptocurrency policies in the US.

Larry Fink’s Perspective on Bitcoin

Larry Fink, CEO of BlackRock, a leading US asset management company known for issuing a Bitcoin spot ETF, expressed his belief that Bitcoin (BTC) is an investment for times of fear.

In a CNBC interview published on July 15, 2024, Fink explained that he has revised his perspective on Bitcoin over the past few years.

Initially skeptical about Bitcoin, Fink acknowledged that after learning more about it, he realized his opinion from five years ago was wrong. He now believes Bitcoin is a legitimate financial asset that offers uncorrelated returns despite the potential for misuse.

As you know, I was skeptical, but after studying and learning about Bitcoin, I realized my opinion from five years ago was wrong. This is my current view.

I believe Bitcoin is a legitimate financial product. I’m not saying it can’t be misused, but Bitcoin provides uncorrelated returns as a valid financial tool.

I think Bitcoin is an investment for times of fear. It’s an asset to invest in when a country is excessively in deficit and devaluing its currency.

In nations with uncertainties in daily life, investing in something beyond the control of the government provides more financial control. Therefore, I strongly believe Bitcoin has a role in a portfolio.

I see Bitcoin as digital gold and believe it has great potential for industrial use, which many people are missing out on.

Bitcoin’s Market Recovery

Bitcoin’s price had been declining since around July 7 last month but has been gradually recovering since about July 8. At the time of writing, 1 BTC has recovered to around $65,000.

Senator J.D. Vance is another prominent figure in the crypto space. His 2022 financial disclosure report indicated that he holds between $100,000 and $250,000 worth of Bitcoin.

Vance has been working to improve the US cryptocurrency environment, voting in favor of a joint resolution to overturn an SEC rule requiring banks to report cryptocurrencies as liabilities on their balance sheets and expressing strong concerns about the SEC’s misconduct in the lawsuit against the crypto company DEBT Box.

Donald Trump and the Republican Party have officially stated their intention to end the “hostile crackdown on cryptocurrencies by the Democratic Party.”

If Trump wins the presidential election, it is expected that crypto-friendly policies will be introduced in the US, leading to growth for the entire industry.