Blackrock CEO Calls Crypto a ‘Currency of Fear’ (Complimentary)

Blackrock CEO Larry Fink thinks bitcoin, currently priced at around $104,200, could go as high as $700,000. But that’s only if people are really nervous about the stability of their own currencies around the world. And while it’s anyone’s guess whether Fink’s logic is correct and people will really jump into crypto in times of crisis (this extremely general thesis has yet to be proven), it’s certainly true that Donald Trump’s election has the potential to inject a lot of cash. Volatility in the global economic landscape.

Fink predicted the future value of bitcoin at the World Economic Forum in Davos, Switzerland on Wednesday while discussing the outlook for technologies such as artificial intelligence and cryptocurrencies with Bloomberg. Fink was previously skeptical of crypto in the late 2010s, he said Back in 2017 That, “Bitcoin shows you how much demand there is for money laundering in the world.” But the billionaire has changed his mind in recent years, becoming a true believer in crypto’s promise by 2021.

Fink seems to not only believe that crypto is now a positive thing, but that this reliance on fear is actually an asset. Billionaires think people can make a lot of money from volatility, or at least the worry of volatility around the world.

“Since I became a student of crypto, it was very clear to me that crypto is a currency of fear. And that’s OK,” Fink said during the panel that was available Wednesday YouTube.

Fink was sharing the stage with Peng Xiao, CEO of AI company G42, who intervened “somewhat” in Fink’s contention that fear drives Bitcoin. But Fink doubles down on the idea that it’s “okay” to rely on fear for bitcoin’s fortunes.

“If you’re afraid of your currency depreciating or you’re afraid of your country’s economic or political stability, you can have an international-based instrument called Bitcoin that will overcome that local fear. And so I’m a big believer in using that as a tool,” Fink said.

Fink said the price of bitcoin could reach “$500,000, $600,000, $700,000 per bitcoin” while stressing “I’m not promoting it.”

Fink also said he believes bonds and stocks should be “tokenized.” Why? This part is not clear, because it makes no sense. But why not? We went through this same spurious hype cycle a few years ago when everyone jumped on the NFT bandwagon and tokenizing things that didn’t need to be tokenized could very well be another resurgence.

“The fact that we’re not moving forward with tokenization, every bond and stock is crazy,” Fink said. “We should move towards that border. Obviously, there are winners and losers and all. But we need to be prepared for tokenization. And if we tokenize bonds and stocks, it will democratize finance even more.”

Fink also discussed the energy demands of the massive data centers being built around the world to meet the demands of AI. These data centers require large amounts of energy, which Fink addressed by talking about nuclear power as a possible solution.

“We need a lot of energy partners to make this a viable global initiative,” Fink said. “And hopefully it raises a conversation about what role nuclear plays in the energy mix.”

Fink gave a nod to renewables, saying they would be part of the mix, but said that “unless fusion actually works and we have new sources of energy,” we need to make do with what’s available.

There are some big questions about the future of the US economy that are currently in Davos and beyond. For example, inflation does not seem to be something the ruling class fears anymore, although the 2024 US presidential election largely depends on whether a new president is able to lower prices.

JPMorgan CEO Jamie Dimon was asked about Trump’s plans for across-the-board tariffs against Mexico and Canada, which are expected to be implemented around February 1. And Dimon, who is worth $2.7 billion, seems very worried about that possibility.

“If it’s a little inflation, it’s good for national security, so be it. I mean, get over it,” Dimon told CNBC’s Andrew Ross Sorkin on wednesday.

It sounds like a good mantra for the rich in this new era of Trump: so be it, get over it. If Trump manages to torpedo the economy, we’ll likely hear a lot. That’s probably not what most Trump supporters had in mind when they voted for the 47th president. But that’s certainly what they’re going to get.