Investing.com — Speaking to Bloomberg at the World Economic Forum in Davos, BlackRock (NYSE: ) CEO Larry Fink said he believes it could go up to $700,000.
Fink said he “strongly believes in the use” of Bitcoin as a tool, explaining that those who are worried about the devaluation of their currency or the economic or political stability of their countries can have a “world-based tool called Bitcoin.”
It will “overcome domestic fears,” he added.
He went on to say that when he spoke to the wealth fund earlier in the week, the conversation focused on whether they should have a 2% or 5% allocation to Bitcoin.
“If everybody accepted that conversation, it would be $500,000, $600,000, $700,000 per Bitcoin,” Fink said.
However, he explained: “I don't encourage it at all. That's not my promotion.”
In December last year it was reported that BlackRock said in a report that it advises investors to consider allocating as much as 2% of their portfolio to Bitcoin.
“Bitcoin's role as a store of value and payment system makes it unique,” said Samara Cohen, Chief Investment Officer (CIO) of ETF and Index Investments at BlackRock.
Due to its unique value drivers, we see no reason why bitcoin should be associated with high-risk assets in the long term, said the BlackRock report.