Billionaire investor praises cryptocurrencies but claims he isn’t a Bitcoin student.
Larry Fink, chairman of Blackrock, lauded the burgeoning cryptocurrency sector on Wednesday, but did not express particular enthusiasm for bitcoin.
Fink was asked about bitcoin in an interview with CNBC after JP Morgan Chase CEO Jamie Dimon dubbed the cryptocurrency “fool’s gold” and “a hoax,” and said it was “worthless” this week.
Fink admitted that he was “probably more in the Jamie Dimon camp” when it came to believing that bitcoin is worthless, but he rapidly displayed interest in the digital currency.
“I’m not an expert on bitcoin or where it’s headed. On “Squawk Box,” he said, “I can’t tell you whether it’ll be $80,000 or zero.” “However, I feel that a computerized currency has a significant role to play.” He described it as a “growing new technology” while simultaneously acknowledging that it is a risk. “There will be some large winners and some big losers,” he predicted.
“I have more crypto chats with strangers than anything else,” Fink added.
He thinks it’s “amazing” that so many people are interested in the cryptocurrency sector.
Bitcoin fell 3.5 percent to $55,360 on Tuesday, the worst decline in two weeks. Bitcoin was trading at $57,578.08 at 5:50 p.m. ET on Wednesday, up 2.77 percent.
Despite the recent decline, the most valuable cryptocurrency is still up 90% year to date and reached an all-time high of $65,000 in April.
The current decrease, according to James Butterfill, a U.K.-based investment strategist at CoinShares, “is not a cause for concern.”