The Potential for Cryptocurrencies to Surpass National Currencies
The crypto industry has been experiencing a notable turnaround in recent weeks, leading many to believe that the bull market has officially begun. Adoption of cryptocurrencies appears to be growing once again, and this sentiment is even echoed by Larry Fink, the CEO of BlackRock, the world’s largest asset manager. Fink suggests that cryptocurrencies like bitcoin have the potential to surpass the market value of national currencies.
Bitcoin Worth More Than Fiat Currency
In an interview with CNBC, Fink expressed his positive attitude towards crypto. Given BlackRock’s prominence in the financial world, his perspective can greatly benefit the crypto industry. Fink stated, “More and more investors are asking us about the role of crypto. I see crypto as an international asset, and it holds a unique value relative to other asset classes.”
Fink further elaborated, emphasizing the international nature of cryptocurrencies, saying, “Because it is so international, it will exceed the value of national currencies. Just look at how much the dollar has depreciated in the past two months compared to its growth over the past five years.”
Blackrock CEO Larry Fink: “More and more of our global investors are asking us about crypto” pic.twitter.com/nhaZL9vYHE
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— Will Clemente (@WClementeIII) July 14, 2023
The notion that cryptocurrencies could surpass the value of entire national currencies is not entirely new. In fact, certain cryptocurrencies have already achieved this feat. For instance, according to CoinMarketCap’s rankings, the total market value of Bitcoin (BTC) is already greater than that of the Singapore dollar (SGD), the Vietnamese dong (VND), and the Indonesian rupiah (IDR). Ethereum (ETH) has also surpassed the Colombian peso (COP) and the Moroccan dirham (MAD).
BlackRock’s Interest in a Bitcoin Exchange Fund
Fink’s belief that cryptocurrencies will eventually surpass the market value of even the largest national currencies, such as the dollar and the euro, may have significant implications. BlackRock currently manages a staggering $9.4 trillion in assets according to the latest figures. Even if only a small portion of this amount is allocated to cryptocurrencies through BlackRock, it could have a substantial impact on the industry. Interestingly, in June, BlackRock applied for a spot bitcoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC).