BlackRock’s CEO claimed that increased BTC adoption might multiply its price by several times its current level.
“I would think that there would be a possibility for the price of the Bitcoin hitting that much, somewhere in between $500,000 to $700,000,” Fink said in an interview with Bloomberg at the World Economic Forum meeting in Davos on AI and crypto.
The topic of discussion about crypt certainly took a turn while Fink was seated next to Peng Xiao, CEO of UAE-based AI company G42. While Xiao asserted that he believes crypto is the currency of AI, Fink noted that it’s a hedge against inflation and pessimism about what’s going on in the world.
“Being a student of the crypto space, it clearly came to me that crypto is a currency of fear,” Fink pointed out. “But that is fine. If you are frightened about the debasement of your currency or the economic or political stability of a country, then you have the escape hatch of an internationally based instrument called Bitcoin. It can provide you with some coverage against those local fears.”
Last July he expressed a very similar sentiment, stating that Bitcoin was an investment for those “frightened of the world.”
But it’s an investment that many are contemplating making, including the operators of a sovereign wealth fund that Fink met during his week in Switzerland. He said they were deciding between a 2% or 5% Bitcoin allocation.
“If everyone chose that option,” he said, “it would be worth $500,000, $600,000-$700,000.
However, Fink surely told the audience whose words are not in themselves a promotion for Bitcoin.
BlackRock and its CEO have flown into the spotlight in recent times thanks to their spot ETF launches for crypto assets like Bitcoin and Ethereum, which have raised billions in inflows over the past year.
Bitcoin on the contrary is down by 2.5%, trading at $104,000 in the past 24 hours after a new all-time high of $108,786 was recorded on Monday.