Investing.com – Speaking to Bloomberg at the World Economic Forum in Davos, BlackRock (NYSE 🙂) CEO Larry Fink said he believes it could rise to $700,000.
Fink said he “strongly believes in utilizing” Bitcoin as an instrument, explaining that those concerned about the debasement of their currencies or the economic or political stability of their countries can have an “internationally based instrument called Bitcoin.”
“It will overcome those local fears,” he added.
He went on to say that when he spoke to a sovereign wealth fund earlier in the week, the conversation centered on whether they should have a 2% or 5% allocation to Bitcoin.
“If everyone adopted that conversation, it would be $500,000, $600,000, $700,000 per Bitcoin,” Fink stated.
However, he clarified: “I’m not promoting it by the way. “That’s not my promotion.”
In December last year, BlackRock was reported to have said in a report that it is recommending investors consider an allocation of up to 2% of their portfolio in Bitcoin.
“Bitcoin’s role as a store of value and payments system makes it a potential diversifier,” said Samara Cohen, chief investment officer (CIO) of ETFs and index investments at BlackRock.
Given its unique value drivers, we see no intrinsic reason why bitcoin should correlate with important long-term risk assets,” the BlackRock report states.