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BlackRock CEO Positive Bitcoin Comment

In a CNBC report on December 1st, 2020, BlackRock CEO Larry Fink made comments on how Bitcoin has picked up in popularity and has attracted a wide array of people. With all the added momentum, he told former England Governor Mark Carney at the Council of Foreign Relations that the cryptocurrency asset class can evolve into a global asset.

Larry Fink is an American businessman with a net worth of over $1 Billion and the CEO of BlackRock. BlackRock is a multinational investment management corporation with more than $6.5 trillion in assets under management, making it the world’s largest money management firm. With the massive amounts of assets controlled by BlackRock and a personal wealth of over ten figures. Forbes named him #28 on their list of the world’s most powerful people.

A few years ago, pro-crypto comments such as these from high-net-worth individuals were scarce. It was more common to find words against crypto, and Larry Fink was no exception as he referred to Bitcoin as “an index to money laundering” back in 2017.

More and more wealthy investors who were anti-crypto before are now bullish on Bitcoin and advocate for it. Paul Tudor Jones is a perfect example of this as he originally had a very negative view of Bitcoin a couple of years ago. Now, he has approximately 2% of Bitcoin’s net worth, with his wealth estimated at $5.1 billion.

BlackRock CEO Positive Bitcoin Comment

Recently Paypals CEO Dan Schulman explained why Paypal is now currently rolling out crypto to its 340 million users: Paypals Dan Schulman-View-on-cryptocurrencies/

BlackRock CEO Positive Bitcoin CommentLarry Fink’s change in Bitcoin’s view was because when he made his comments back in 2017, Bitcoin did not have as much infrastructure as it did now. When people drove Bitcoin’s price up to almost $20,000, its infrastructure collapsed and caused the large drop that occurred.

Since then, infrastructure has improved by technological developments, and regulators are quickly clarifying their stance on cryptocurrency. “It has become something that could potentially replace gold as it is much more functional.” Larry Fink, however, also mentioned that having a digital currency could have a significant impact on the U.S dollar and even raised the question if it would change the need for the dollar as the reserve currency.

These concerns stem from the fact that more and more investors are flocking to Bitcoin, and though Bitcoin continues to make highs, the cryptocurrency market is still relatively small compared to other markets. As popularity grows, it will start to negatively impact the U.S dollar as cryptocurrencies will make the U.S dollar less relevant.

Fink raised these concerns to the attendees of a Council on Foreign Relations during a virtual meeting where he clarified, “I’m not talking about for Americans, I’m talking about for international holders of dollar-based assets. Does it change the need for the dollar as a reserve currency, if there was a true digital currency that was separated from dollar-based assets?”