Bitcoin could reach $700,000 due to fears of currency devaluation, according to BlackRock's CEO
Despite a recovery in the U.S. dollar index and lower-than-expected consumer price index data, inflation concerns persist.
BlackRock's CEO, Larry Fink, appeared in an interview during the World Economic Forum in Davos to discuss the future of digital currencies and said that Bitcoin
could reach $700,000 per coin due to fears of currency devaluation.
The CEO stated that small collective allocations from asset managers, between 2% and 5%, could drive such a price increase. Fink told Bloomberg:
“If you are afraid of devaluing your currency or are concerned about the economic or political stability of your country, you can have an international base instrument called Bitcoin that will overcome those local fears.”
“And that’s why I am a big believer in using this as an instrument,” Fink continued. However, BlackRock's CEO also qualified his statements by adding that he was not promoting Bitcoin.
Fink also expressed concern about the possibility of elevated inflation over the next 12 months and warned of the danger of assuming that peak inflation levels have already been reached.