Bitcoin is yet to establish itself as a viable store of value: BlackRock CEO

BlackRock’s chief executive Larry Fink believes Bitcoin (BTC) has the potential to become a widely accepted store of value 

Laurence Fink, the CEO of Blackrock, the world’s largest asset manager, argued that the crypto sector is yet to become established. He went on to explain that Bitcoin could evolve to become a good store of value. The CEO of the $7 trillion investment management corporation expressed his view while speaking in an interview with Bloomberg. He asserted that the BTC price fluctuates widely and for this reason, he feels the crypto asset is not suitable for ‘calm’ investors.

“It’s not a market for the calm. Right now, it’s still untested. We’re watching it, we’re enjoying the conversation. But it has not been proven yet“, he said.

The chief executive insisted that he was aware of the hype around cryptocurrencies, especially Bitcoin, attributing it to the media coverage. Fink claimed that many people are being drawn to crypto-assets because the media now covers the crypto sector in depth.

He explained the different views on the asset—the investor eye and the business media. The latter, according to Fink, foresees the digital asset having a great future and becoming widely adopted. The investors, on the other hand, are focused on its value and are keen on seeing how it performs as a store of wealth.

The billionaire businessman maintained that the market needs to broaden for Bitcoin and other cryptocurrencies to achieve ultimate success. This way, investors will be able to “invest large sums of money without moving the value of Bitcoin”. The long-term viability of the asset, he said, was in question as Bitcoin is unproven.

Fink is confident that some form of digitised currency dictating the global financial landscape will be necessary for the near future. He said it could be any currently existing asset or even one that hasn’t been created yet.