Investing.com — Speaking to Bloomberg at the World Economic Forum in Davos, BlackRock (NYSE: ) CEO Larry Fink said he believes the price could rise to $700,000.
Fink said he is a “big believer in using” Bitcoin as an instrument, explaining that those who are concerned about the decline in the value of their currencies or the economic or political stability of their countries can have “an international instrument called Bitcoin.”
This will “overcome those local fears”, he added.
He went on to say that when he spoke to the sovereign wealth fund earlier this week, the conversation focused on whether they should have a 2% or 5% allocation to Bitcoin.
“If everyone bought into that conversation, it would be $500,000, $600,000, $700,000 per Bitcoin,” Fink stated.
However, he clarified: “By the way, I’m not promoting it. It’s not my promotion.”
Last December, it was reported that BlackRock said in a report that it recommends investors consider allocating as much as 2% of their portfolio in Bitcoin.
“Bitcoin’s role as a store of value and payment system makes it a potential diversifier,” said Samara Cohen, chief investment officer (CIO) of ETFs and Index Investments at BlackRock.
Given its unique drivers of value, we see no intrinsic reason why bitcoin should be associated with a high-risk asset over the long term,” BlackRock said in a report.
