Bitcoin has been on a tear over the recent years. Despite the many different controversial opinions related to the cryptocurrency, bitcoin is thriving and its price is rocketing. At present, the digital currency is two times more expensive than an ounce of gold. Even after the recent drop, its price has increased more than sixfold since the beginning of this year. Coming as no surprise, bitcoin is well incorporated into the financial services industry. On Monday this week, BlackRock’s Chief Larry Fink explained that the volatility of bitcoin and its anonymous nature is what makes the cryptocurrency so attractive to traders.
At the Reuters Global Investment 2018 Outlook Summit in New York City, Mr. Fink tried to explain why bitcoin is thriving. According to the company’s leader, bitcoin is “anonymous” and “cross-border”, which is the cryptocurrency’s driving power. Mr. Fink described bitcoin as a “speculative instrument”, which provides favorable conditions for money laundering activity. Mr. Fink could not explain why bitcoin appears at the center of attention of media. It seems that Mr. Fink sees bitcoin as an overpraised digital payment tool, which does not deserve such a big fuzz around it.
Mr. Fink elaborated that bitcoin is “tiny” in terms of the overall picture of the financial markets. At last, Mr. Fink advised investors, who are chasing long-term success, should invest in “100% equities”. Last week, Casino Reports produced an article, which reflected Spain’s most popular fund manager Francisco García Paramés opinion regarding bitcoin. Similar to Mr. Fink, he warned young investors not to be lured by bitcoin’s volatility, which promises fast profits. He added that it is better to bet on expensive and sure companies, rather than on cheap companies with blurred future.
But no matter what, bitcoin just keeps climbing. It is interesting to note that bitcoin reached a record high value of $7,888 on 8th November. Shortly afterwards, bitcoin’s price dropped down, but it still remained high enough to keep its leading position on the market.
Blackrock’s Relations with Former Amaya
Mr. Fink’s company is a popular investment firm, which reportedly oversees almost $6 trillion in assets. Blackrock, or as it is formerly known as Blackstone Group attracted public attention some time ago, when the company agreed to invest $1 billion in the proposed acquisition of PokerStars and Full Tilt Poker. As it can be recalled, David Baazov, the former CEO of the Canadian online gambling giant Amaya (recently re-branded into The Stars Group) suggested to take over the two brands and add them to Amaya’s bountiful selection.
Long story in short, the Rational deal failed as Mr. Baazov decided to abandon his bid to buy the online gambling company and take it private.