For the financial giant, BTC is a “unique diversifying asset.”
BlackRock manages the largest ETF in the world.
Larry Fink, CEO of BlackRock, stated that bitcoin (BTC) has the potential to reach $700,000. It was during his participation in the World Economic Forum, held in Davos, Switzerland.
In this framework, Fink defined bitcoin as a safe haven asset against fiat currency devaluation and political instability. Furthermore, he expressed:
“If you are afraid that your currency will be devalued, you can have an international instrument called BTC. I am a great believer. We could reach $500,000, $600,000 or even $700,000 per BTC.
Larry Fink, CEO of BlackRock.
Likewise, he stressed that this scenario would be possible if sovereign funds from around the world They will allocate only between 2% and 5% of their resources to the currency created by Satoshi Nakamoto.
As CriptoNoticias has reported, Fink changed his opinion and now maintains that BTC is like “digital gold.” Furthermore, he believes that the most valuable digital asset on the market should be part of all investors’ portfolios because it potentially allows returns and provides financial control.
For its part, the company that manages the world’s largest exchange-traded fund (ETF) argued in one of its latest reports that BTC is a “unique diversifying asset” due to the factors that distinguish it from other traditional assets.
“BTC’s unique characteristics can make it a hedge against risks that traditional assets cannot address, particularly in times of heightened geopolitical and economic uncertainty,” the report highlights.
This is because the digital asset has a supply limit of 21 million BTC and its issuance decreases every 4 years with the halving. That inherent scarcity is what sparks the interest of investors and financial institutions.because in times of inflation or global tensions it acts as a safeguard of value.
In this way, bitcoin is distinguished from fiat money, which usually loses value due to constant issuance and the monetary policies of central banks.
