Blackrock CEO changes opinion on Bitcoin – BTC questions US dollar
During a conversation with Mark Carney, a former governor of the Bank of England, at the Council on Foreign Relations (CFR), BlackRock CEO Larry Fink raised the possibility that Bitcoin could eventually become a BitQT global market, CNBC reports.
„Bitcoin has caught the attention and imagination of many people. Still untested, rather small market compared to other markets. You see these huge movements every day … it is a thin market. Can it develop into a global market? Possibly“.
Already in October 2017 Fink had called Bitcoin the „Money Laundering Index“:
Bitcoin only shows you how great the demand for money laundering is in the world. That is all it is.
In November 2018 he claimed that the largest crypto currency was not legitimate:
I don’t feel that any government will allow it if it doesn’t know where the money is going.
Fink’s turn at Bitcoin came after Blackrock CIO Rick Rieder said that the world’s largest crypto currency could „to a large extent“ replace gold.
BTC becomes the financial product of the big
The $7.43 trillion asset manager already has a stake in Bitcoin through the business intelligence company MicroStrategy, which holds 38,250 BTC. Blackrock Fund Advisors owns 1,072,819 shares, which are currently valued at $179.2 million.
We have seen a similar career path from the CEO of JP Morgan. For years, he has accused Bitcoin of fraud or the like. In the meantime, JP Morgan recommends to hold part of the portfolio in BTC.
This trend will not abate. More and more people understand the importance of the rare asset. Although there will be short to medium term speculation even with the big ones, the direction is clear.
Bitcoin vs. US dollar
According to Fink, the BTC and other crypto currencies also question the future of the US dollar as the world’s reserve currency.
He believes that Bitcoin makes the US dollar „less relevant“ to international owners.
This is mainly due to differences in monetary policy. At Bitcoin, the supply of new BTCs is becoming increasingly scarce and the maximum number is limited. With fiat currencies there is no maximum limit and more and more are being created.
Bitcoin does not have to compete against the US dollar. The strong inflation of the US dollar will automatically flush people into BTC. Prepare yourself for the digital money revolution.