CEO of BlackRock: “Bitcoin protects you”

ETF Bitcoin obliges, the CEO of BlackRock entered the media arena where he was asked for his predictions regarding bitcoin.

Bitcoin, digital gold

Larry Fink said that bitcoin “will appreciate if people are worried about geopolitical tensions” :

“There is no difference from what gold has represented for thousands of years. It’s an asset class that protects you. But unlike gold, of which we extract a little more each year, we are almost at the bitcoin issuance ceiling. »

Indeed, the difference between gold and bitcoin is immense, as we wrote in this article:

“We take out more than 3,000 tonnes of soil per year and each year a little more than the previous year. Given that the global gold stock is around 180,000 tonnes, this gives us an S2F (Stock to Flow) ratio of 60. That is, it takes 60 years of production to double the existing stock.

Bitcoin has a slightly lower ratio, for the moment… From next April, the date of the “halving”, the quantity of BTC created each year will decrease by half. BTC’s S2F ratio will then explode to 120, officially becoming twice as difficult to create as gold. This ratio will exceed 1000 in 2035, when 99% of BTC will already be in circulation. »

As for whether, like Cathie Wood, the CEO of BlackRock also thinks that BTC could reach $600,000, the person drew a parallel with gold:

“I didn’t think about it. […] I think even if bitcoin goes that high, gold would still represent a higher market cap. »

In other words, Larry Fink does not seem to think that bitcoin will cannibalize the barbaric relic, unlike Blockstream CEO Adam Back.

These statements come just two days after the Securities and Exchange Commission (SEC) approved BlackRock’s bitcoin ETF and those of 10 other investment funds.

Mr. Fink’s positive sentiment adds to the growing number of influential figures who recognize that bitcoin has a place in a portfolio.

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