Pakinomist — Speaking to Bloomberg at the World Economic Forum in Davos, BlackRock (NYSE: ) CEO Larry Fink said he thinks it could rise to $700,000.
Fink said he is a “big supporter of the use” of Bitcoin as an instrument, explaining that those concerned about the deterioration of their currencies or the economic or political stability of their countries can have an “international based instrument called Bitcoin.”
It will “overcome local fears,” he added.
He continued that when he spoke to a sovereign wealth fund earlier this week, the conversation was about 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 declared.
However, he clarified: “I’m not promoting it by the way. It’s not my promotion.”
Last December, BlackRock was reported to have 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 value drivers, we see no intrinsic reason why bitcoin should be correlated with large risk assets over the long term,” the BlackRock report said.
