While speaking at the World Economic Forum in Davos, BlackRock CEO Larry Fink described how Bitcoin (BTC) could reach $700,000. What are his arguments?
Larry Fink imagines how BTC could reach $700,000
Speaking at the World Economic Forum in Davos, Larry Fink, CEO of asset manager BlackRock, made arguments according to which Bitcoin (BTC) could be worth up to $700,000.
Indeed, it first presents the asset as a means of protection against the weaknesses of monetary policies around the world:
If you are worried about the devaluation of your currency, or the economic or political stability of your country, you could turn to an internationally based instrument, like Bitcoin, which can overcome these local fears. So I'm a big proponent of using it as an instrument.
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Subsequently, the interested party takes the scenario according to which BTC would cover a position exposed to government bonds or stocks. With this in mind, he then imagines a scenario according to which each would allocate 2 to 5% of BTC in their portfolio for this strategy, which allows him to arrive at his estimates:
This week I was with a sovereign wealth fund, and that was exactly the discussion: should we have a 2% allocation? By 5%? If everyone adopted this logic, Bitcoin would be worth $500,000, $600,000, or $700,000 per unit.
For the moment, significant democratization work must still be done before we see “everyone adopt this logic“, although mentalities have already evolved greatly in the space of a year.
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As of this writing, the price of BTC is down 3.3% in 24 hours, for a price of $101,600. While the asset managed to briefly exceed its all-time high (ATH) last Monday, it currently remains stuck in a range for several weeks, awaiting a clear direction. For its part, IBIT, BlackRock's spot Bitcoin ETF, has $59.78 billion in assets under management.
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Source: Image: Michael Buholzer via Flickr (CC BY-NC-SA 2.0)
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