Larry Fink, CEO of BlakRock, the world’s largest asset management company, in October 2017 said bitcoin was a “money laundering index”, but now his view is changing.
Fink now says bitcoin could evolve into a “global market” because it managed to attract “attention and imagination” to millennials.
Millennials use bitcoin a lot
Before Fink, Rick Rider, Blackrock’s Chief Investment Officer, told CNBC International’s Squawk Box event Friday (20/11/2020) that bitcoin “will be accepted” because many millennials use it.
“I think cryptocurrency will be accepted. I think it will last a long time, and you’ve seen central banks already talking about digital currencies,” Rider said.
“I think digital currency and acceptance (among millennials) its technology as well as cryptocurrency are real. Digital payments are real, so I think bitcoin will be accepted,” he added.
Rider even said that someday bitcoin could replace gold widely.
“Do I think the bitcoin mechanism can replace gold widely? Yes, I think so, because this mechanism is more functional than transferring gold bullion,” he said.
Many investors entered Bitcoin
Before BlackRock, seasoned investors, such as Paul Tudor Jones, and Stanley Druckenmillier also started investing in bitcon.
At CNBC International’s “Squak Box” event last May, Jones said bitcoin was “very good speculation”, and that there was about 2% bitcoin in his investment portfolio.
“More than 1% of my current assets are bitcon, maybe almost 2%, and that looks like the right number for now,” said Jones as reported by CNBC International.
For investors in general, Jones’s investment in bitcoin is something unusual. But according to Jones, bitcoin is better than cash, such as the United States dollar (US).
“If you hold cash, you know the central bank has the goal of depreciating the exchange rate by 2% per year. So basically holding cash equals making your assets for nothing,” he said.
Then Stanley Druckenmillier, sees inflation in the US will continue to rise in the next 5 to 6 years due to monetary stimulus from the US central bank (Federal Reserve / The Fed), and he likes gold and bitcoin as a hedge against the risk of rising inflation.
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