In a recent conversation on FOX Business, Larry Fink, CEO of BlackRock, referred to cryptocurrency as “digital gold,” dubbing Bitcoin (BTC) as a digital asset. Fink is of the belief that cryptocurrencies are in essence a digital form of gold, stating, “I do think that in many respects, crypto is serving to digitalize gold.”
Fink elaborates his perspective by explaining that Bitcoin, as an international asset, could serve as an alternative to gold. People usually turn to gold as a safe haven during times of inflation, when their country is dealing with complex issues or when their currency is experiencing devaluation. However, Bitcoin, being global, can provide a similar kind of security.
This concept of Bitcoin being an international asset brings a fresh perspective to the table. It was just last month when BlackRock, the world’s largest asset manager, submitted an application for a Bitcoin ETF (exchange-traded fund).
Adding more fuel to the crypto flame, Nasdaq included a Coinbase surveillance sharing agreement (SSA) in a recent refilling for a spot Bitcoin ETF. With this move, Fink hopes that the spot ETF filing could be a tool to “democratize crypto,” making it more accessible to everyday investors.
Historically, gold has been the go-to alternative to fiat currency for investors. However, with the rise of cryptocurrencies in the last decade, these digital assets are swiftly becoming a sought-after alternative investment. Bitcoin leads the pack in terms of market value. As per data from CryptoMeter, Bitcoin is currently priced at $30,484.52, boasting a market capitalization of approximately $592.1 billion at the time of writing.
