The world’s largest asset management company’s CEO just stated that there may be “huge opportunities” for cryptocurrencies, but that is not without working on them to improve the downsides.
In a recent interview, the CEO of BlackRock, Larry Fink stated that he is a “big believer” in cryptocurrencies but in order for it to grow and see some sort of legitimization, it has to move away from being based solely on speculation. Fink stated that “related to cryptocurrencies, I’m a big believer in the potential of what a cryptocurrency can do. You see huge opportunities, but what we’re talking about today, it’s much more of a speculative platform, people are speculating on it.”
Fink then stated that his firm has not had much interest from the clients due to the market being based on speculation, but stated that there are some other large firms that are showing interest in it. Fink stated that “we’re being asked that question but it’s more of a venture capital type of interchange, but we’re not hearing clients say ‘we want to use this as an asset class’.”
Cryptocurrencies have historically been highly speculative and based on a sketchy market, but hopefully that will change soon. Fink then stated that “as I said, it’s much more of a speculative platform for Asia, and it’s heavily used for money laundering.”
It is a difficult market to get behind as its history has been based in sketchy and illegal markets. Cryptocurrency has historically been used to not only launder money, but anonymously buy anything online from drugs to weapons. Because of this nature, some investors have been wary to put in money, but the reality is that the industry is growing tremendously and may become the future of finance in this country and throughout the world.