Bitcoin Is the New Gold, According to BlackRock CEO Larry Fink.

Blockchain technology will eventually replace conventional financial intermediaries, according to BlackRock CEO Larry Fink, showing a strong commitment to the uptake of cryptocurrencies.
BlackRock CEO Larry Fink

In a Fox Business interview, Larry Fink, CEO of BlackRock, the largest asset manager in the world, compared Bitcoin to gold and asserted that it is “digitizing” gold.

The price of Bitcoin has increased by an astonishing 83% since the year 2023 began. Given that a sizable amount of the gains occurred after BlackRock submitted an application for a spot Bitcoin Trust ETF in mid-June, this move is very noteworthy.

The company’s proposal is one of many from titans of the sector, including Ark, InStress Eco, VanEck, and Greyscale, who are all looking for regulatory approval for comparable crypto goods.

In dealings with the Securities and Exchange Commission (SEC), BlackRock has a good track record. Only one of the firm’s 576 ETF applications has been turned down. This tactical action demonstrates BlackRock’s dedication to the adoption of cryptocurrencies and its determination to collaborate with regulators to create solutions for cryptocurrency-based investing.

Tokenizing assets and securities has the potential to be the next financial industry revolution, according to Fink. The company is confident that its ETF products would make investment more accessible, particularly for Bitcoin and other cryptocurrencies.

The CEO of BlackRock explained how lowering the pricey bid-ask spread for cryptocurrencies would lower transaction costs and increase investment returns. Fink sees this crypto democratization as a step in the direction of greater financial inclusion.

Due to the early adoption of cryptocurrencies for illegal purposes, Fink first expressed some concern about them. He has since changed his mind, realizing the potential of Bitcoin as a worldwide asset unattached to any particular currency and as a hedge against inflation.

Fink believes that the underlying blockchain technology has the potential to improve transaction speed and traceability, effectively eliminating some conventional financial intermediaries, notwithstanding the skepticism surrounding its usefulness. Despite this, he acknowledges that the world is “not close” to being at this position just yet, indicating that there is still much possibility for advancement.

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