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Bitcoin has to prove itself in order to become a reliable store of value. BlackRock CEO and founder Larry Fink said that the crypto asset might see a bright future, but firstly it has to endure and prove itself.
Bitcoin is Still Untested
During a recent interview, BlackRock founder and CEO Larry Fink expressed his current opinion and predictions towards the world’s leading cryptocurrency in terms of market cap. Asked to share some thoughts on BTC, Fink said that the digital asset might see a bright future and even become a store of value, but it still has its time ahead to prove itself.
Fink addressed the BTC environment as a “very small market,” pointing out that it can move in substantial increments with relatively small movements of money. He specified that it is not a market for the calm and that for now, the primary cryptocurrency has fascinated many people, though being a small asset category.
Still, Fink stressed out the fact that, though being highly popular, BTC has not yet tested on investors’ point of view. He also touched upon bitcoin’s infamous volatility.
“(Bitcoin) is still untested. It has huge volatility moving in 5-6% increment with small dollar investments moving it. For anything like that to be truly successful, it’s going to have to have a broadening of the market…”
In conclusion, BlackRock’s CEO added that the Wall Street organization is fascinated and enjoys the whole BTC conversation in media. Additionally, he believes, whether Bitcoin or not, some form of digitized currency is going to play a significant part in the economic future.
Seeing Some Prospects in Bitcoin
Despite Fink’s last comments on the primary cryptocurrency, BlackRock Inc. has shown some interest in developing Bitcoin-related endeavors. Just recently, the world’s largest asset manager announced it might start trading Bitcoin futures contracts.
As CryptoPotato reported, the Wall Street giant recently filed two Prospectus documents with the United States Securities and Exchange Commission (SEC) – on behalf of BlackRock Funds V and BlackRock Global Allocation Fund Inc.
The documents included a fragment, suggesting that the company may engage in trading cash-settled Bitcoin futures contracts.
In November, another BlackRock executive, CIO Rick Rieder, also engaged the Bitcoin topic boldly. In an interview, he suggested that the primary cryptocurrency may take gold’s place in the digitized world. According to him, BTC, digital payments, and digital currencies are here to stay.
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