In a recent statement, BlackRock's CEO Larry Fink emphasized the importance of Bitcoin, calling it a 'fear currency' and a digital equivalent of gold in times of economic instability.
Larry Fink’s Changing View on Bitcoin
Larry Fink has changed his stance on Bitcoin, stating that it serves as a safe asset during periods of uncertainty. In 2017, he referred to Bitcoin as the 'currency for money launderers and thieves', but his opinion shifted following the COVID-19 pandemic. He noted that he studied the asset and observed examples of its practical use, including a case of a woman in Afghanistan who used cryptocurrency to pay workers while avoiding Taliban controls.
Bitcoin’s Role as a Hedge
Fink emphasized that he does not believe Bitcoin will replace traditional currencies, but sees it as a hedge against instability and depreciation. He drew a parallel with gold, describing Bitcoin as a safe asset during economic or political tension.
Growth of BlackRock’s Bitcoin Trust
BlackRock launched the iShares Bitcoin Trust in January 2024, becoming the second-largest holder of Bitcoin worldwide, controlling over 781,000 BTC. This surpasses reserves held by platforms like Coinbase and Binance. Since ETF holdings remove Bitcoin from circulation, it creates a supply crunch and enhances the asset's price stability in the market.
Larry Fink's transition from critic to advocate highlights how Bitcoin is gaining recognition in traditional financial circles. His new perception of Bitcoin as a 'fear currency' and digital gold is increasingly acknowledged among investors.
