$5.7 Trln Investment Company BlackRock: Cryptocurrency Will Be ‘Widely Used’ In Future
The world’s largest investment company BlackRock has continued its bullish forecast for cryptocurrency, saying it sees “wider use” in the future in its weekly commentary report released Monday, Feb. 26.
The investment management giant with $5.7 trln in assets under its control said that it would take time for cryptocurrency’s volatility to dissipate so it could enter traditional investment portfolios.
“Our bottom line: We see cryptocurrencies potentially becoming more widely used in the future as the markets mature,” the report determined.
“Yet for now we believe they should only be considered by those who can stomach potentially complete losses.”
BlackRock stands out among fellow finance industry giants with its quietly supportive stance on Bitcoin and other crypto assets’ investment potential.
As Cointelegraph reported late January, the corporation’s chief multi-asset strategist had gone public with comments that crypto was being kept under “close review” as an “interesting development.”
Continued interest despite volatile periods, Isabelle Mateos Y Lago said, constituted proof there “really is something to” the phenomenon.
The mood contrasts sharply with some other investment stalwarts. This month, Berkshire Hathaway vice chairman Charlie Munger described Bitcoin as “totally asinine” and said investing in it was “disgusting.”
On the topic of Blockchain meanwhile, BlackRock sees similar barriers to full global economy penetration.
“A blockchain-based, single shared financial database could eliminate inefficiencies and risks associated with human processes, but adoption at scale would require a massive shift in software development and a well-constructed maintenance model,” it added.
“...Blockchain needs to overcome significant hurdles to reach its promising future.”