Crypto-Mastermind summary:

  • Larry Fink, formerly Bitcoin-critical CEO of BlackRock, said in a CNBC interview that Bitcoin could well grow into a global market.

  • BlackRock has been watching Bitcoin closely ever since its acceptance by companies and institutions has increased in recent months.

  • According to Larry Fink, Bitcoin could even make the US dollar less relevant for international users.

The world’s largest asset manager, BlackRock, is already indirectly invested in Bitcoin through MicroStrategy. Now even the formerly critical BlackRock CEO Larry Fink is optimistically changing his mind about Bitcoin. In an interview with former Bank of England Governor Mark Carney at the Council on Foreign Relations (CFR), Fink mentioned that Bitcoin could potentially become a global market.

The view on Bitcoin has changed

In the past, Fink’s statements about Bitcoin were primarily negative. For example, in October 2017, he stated that Bitcoin was a pure indicator of money laundering:

„Bitcoin just shows you how much demand for money laundering there is in the world. That’s all it is. It’s an index of money laundering.“

A year later, the BlackRock CEO doubted that governments would approve Bitcoin:

„I don’t feel that any government will allow it if it doesn’t know where the money is going.“

However, this view was not to last. About one month ago BlackRock’s chief investment officer (CIO) Rick Rieder talked about Bitcoin in a CNBC interview. He said that Bitcoin is „here to stay“ and it could „take the place of gold to a large extent.“

BlackRock has been watching Bitcoin closely ever since the worldwide recognition of the cryptocurrency has increased significantly in recent months. Also Larry Fink himself has obviously changed his mind. In a CNBC interview, he says that he considers the Bitcoin market to be „thin“ and believes its growth is quite possible:

„Bitcoin has caught the attention and imagination of many people. Still untested, rather small market compared to other markets. You see these huge movements every day … it is a thin market. Can it develop into a global market? Possibly.“


Is institutional interest becoming a threat to the US dollar?

Only a year ago, such statements from institutional investors, let alone an asset manager of over $7 trillion, were the exception. However, the public perception of Bitcoin has changed significantly over the last year.

More and more money is flowing into crypto-investment-funds like Grayscale and many companies and institutions are buying Bitcoin. Investments by companies like Square, MicroStrategy or Galaxy Digital triggered a kind of rethinking. More and more well-known investors and fund managers expressed themselves pro-Bitcoin or even invested themselves. These are Paul Tudor Jones, Stanley Druckenmiller, Nouriel Roubini, Bill Miller and Ricardo Salinas Pliego, the richest man of Mexico.

Currently about 900 BTC are mined every day. According to Pantera Capital, PayPal alone is buying up almost 70% of the constantly new offer. Another large share is accumulated by Grayscale. High demand with reduced supply means one thing above all: the price is rising. This could also be clearly observed in the last months.

If it goes to Larry Fink Bitcoin and other cryptocurrencies could even threaten the future of the US dollar as world reserve currency. He thinks that Bitcoin makes the US-Dollar less relevant for international users.

Many people are increasingly losing confidence in monetary policy and see Bitcoin as an alternative that counteracts the weaknesses of the Fiat-monetary-system. A stronger adoption could give these people easy access, which may be the last trigger for them to invest in Bitcoin.

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