BlackRock CEO claims that Bitcoin can serve as a hedging tool to help investors cope with local political and economic instability challenges

Larry Fink, CEO of BlackRock, a large asset management company, stated in an interview with Bloomberg TV at the World Economic Forum (WEF) in Davos, Switzerland that investors came to the conclusion too quickly that high inflation had ended, which could lead to the risk of rising bond yields.

The biggest risk in the world today is that everyone thinks we have passed the peak of inflation, "Fink said." I can really imagine a scenario where we will face sustained high levels of inflation

In addition, Fink also discussed the role of Bitcoin in regions with unstable political and economic situations. He stated that with a deeper understanding of the cryptocurrency market in recent years, he has come to the conclusion that cryptocurrency is a 'currency of fear' that can be used as a hedge.

If you are afraid of your currency depreciating, or if you are concerned about the economic or political stability of your country, you can choose an international tool called Bitcoin to overcome these local concerns. So, I strongly believe in its value as a tool

Fink He also stated that he is in dialogue with some sovereign wealth funds, which are actively exploring the possibility of allocating 2% to 5% of their investment portfolios to Bitcoin. He also speculated what might happen if investors of all sizes decided to allocate 2% to 5% of their investment portfolios to Bitcoin.

This week I met with a sovereign wealth fund and discussed this aspect: 'Should we have a 2% allocation or a 5% allocation?' If everyone starts adopting this approach, each Bitcoin could reach $500000, $600000, or $700000

Seemingly to avoid triggering an overreaction to his words, he immediately added, "By the way, I'm not promoting it, I'm not promoting it

Data source: Bloomberg、The Block