BlackRock CEO Larry Fink has reiterated his bullish stance on Bitcoin, calling it a “fear currency” and a modern form of “digital gold.”
In 2017, Fickn believed Bitcoin currency for “money launderers and thieves,” but during COVID he studied BTC and met people who were using the leading cryptocurrency in unusual ways.
He cited the example of a woman in Afghanistan who paid her employees in bitcoin, circumventing Taliban restrictions. The encounter made Fink reconsider his view on the usefulness of BTC.
Since then, the top manager’s views have changed, primarily due to his understanding of BTC’s role as a store of value. In his opinion, Bitcoin It’s unlikely to become a currency, but it can indeed be considered digital gold that people buy out of fear.
Fink believes that fear of domestic instability and currency devaluation is a powerful incentive that gives Bitcoin legitimacy.
Larry Fink’s BlackRock Makes Bitcoin History With iShares ETF Bitcoin Trust (IBIT), launched in January 2024.
According to CryptoQuant, IBIT now controls over 781,000 BTC worth $88 billion, which is more than the alleged creator of Bitcoin. Satoshi Nakamoto.
Unlike exchange reserves, which are often used for trading, the structure ETF effectively excludes Bitcoin from circulation. This creates a supply shock, which, combined with strong demand, leads to an increase in the price of the asset.