BlackRock CEO expresses concerns about the US government deficit, changes previous skeptical stance to bullish on Bitcoin
BlackRock CEO Larry Fink said in a media interview that the soaring US government debt is a major reason why investors hold Bitcoin. He has changed his previous skeptical stance and is optimistic about the future of Bitcoin, calling it "digital gold". BlackRock has now become an important player in the cryptocurrency field. Since the launch of the company's iShares Bitcoin Trust (IBIT) in January this year, it has attracted over $18 billion in funds, firmly holding the top spot in Bitcoin ETFs
Global asset management giant BlackRock's CEO Larry Fink recently publicly stated that Bitcoin is expected to become a hedge tool in the face of political uncertainty in the United States. He has shifted from his previous skepticism towards cryptocurrencies and now sees a bright future for Bitcoin.
On Monday, July 15th, Eastern Time, Fink bluntly stated in a media interview, "I firmly believe that Bitcoin has an indispensable position in portfolios, just like 'digital gold.'"
BlackRock has become a significant player in the cryptocurrency field. Since the launch of the company's iShares Bitcoin Trust (IBIT) in January this year, it has attracted over $18 billion in funds, becoming the largest Bitcoin ETF in the industry. In addition, the company has also submitted an application to launch an Ethereum ETF, planning to further expand into the cryptocurrency investment field.
Fink pointed out that the political uncertainty in the United States and soaring government debt are major reasons why investors hold Bitcoin. He emphasized, "I'm not saying that Bitcoin cannot be abused, but it is a legitimate financial tool that can provide you with returns unrelated to other types. I believe that when you are concerned about the currency devaluation and inflation caused by high deficits in some countries, Bitcoin is undoubtedly an investment tool worth considering."
Since the outbreak of the COVID-19 pandemic, the surge in global government spending and rising inflation pressures have driven the soaring price of Bitcoin. Although Bitcoin has shown synchronous performance with the Nasdaq Composite Index in certain periods, demonstrating its risk attributes, Fink believes that the excessive growth in public spending is the key issue the world is currently facing. He warned, "The proportion of public deficits to GDP is rapidly expanding."