Investing.com — Speaking to Bloomberg at the World Economic Forum in Davos, BlackRock (NYSE:) CEO Larry Fink said he thinks it could reach $700,000.
Fink said he was “a strong proponent of using” Bitcoin as an instrument, explaining that those who are concerned about the depreciation of their currency or the economic or political stability of their country can have a ” international instrument called Bitcoin.
This will “overcome these local fears”, he added.
He added that in a conversation with 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 this conversation, it would be $500,000, $600,000, $700,000 per Bitcoin,” Fink said.
However, he clarified: “I am not promoting it anyway. This is not my promotion.
In December last year, it was reported that BlackRock said in a report that it recommended investors consider an allocation of up to 2% of their portfolio to Bitcoin.
“Bitcoin’s role as a store of value and payment system makes it a potential diversification tool,” said Samara Cohen, chief investment officer (CIO) of ETFs and index investing at BlackRock.
Given its unique value drivers, we see no intrinsic reason why bitcoin should be correlated over the long term with major risk assets,” the BlackRock report said.
