The CEO of the largest asset-management firm in the World went on TV to discuss how Bitcoin could “revolutionize financial services.”

It’s not a mistake.

Yes. Larry Fink (CEO of BlackRock, BLK) spoke to Fox Business yesterday about bitcoin and gave a positive review. It’s the same Larry Fink that said in

Fink said bitcoin was an “international asset that is not based on a single currency… that people could play as an alternate” when discussing inflation hedges and risk hedges.

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The Federal Reserve’s Minutes released yesterday afternoon were interpreted as being hawkish. This means that even though job gains were robust, and GDP was increasing (albeit modestly), there were still far too many jobs, and far too much inflation. The markets were not happy with the prospect of more restrictive monetary policies, and they spent much of Thursday in a downward trend.

What’s all the fuss about?

BlackRock’s Bitcoin ETF, and those of its competitors and others have been the subject of headlines after headlines. This is exhausting, but there’s an important reason. The narrative has a dramatic change.

Opinion

For a long time, bitcoin believers have called bitcoin ” Digital Gold ” or “Gold 2.0”. It is significant to hear one of the most authoritative voices in finance mention bitcoin as “digital gold”. The main reason why inflation hedges are considered inflation hedges is that we collectively say they are inflation hedges and the supply cannot be increased or decreased artificially.

There’s still more. Fink’s full quote is below:


Instead investing in gold to hedge against inflation or the problems of a single country, or devaluation of the currency of the country in which you are located, let’s be clear that bitcoin is an international currency, and it can act as an alternative asset.

This is insane.

Fink went full “bitcoin bro.”

It adds another narrative into the “digital-gold” narrative. Bitcoin is money that does not belong to any nation. It is neutral money, which can be used as a hedge against currency devaluations like those we are experiencing in countries such as Lebanon. These are not new narratives or talking-points. BlackRock is the only one who has done so. Like I said above, this is a complete reversal.

We all want to understand why BlackRock changed its mind, and the answer is simple (apart from BlackRock wanting to earn money by releasing its Bitcoin ETF).

BlackRock clients are becoming more and more concerned about the economy. The economy is in a state of turmoil. Interest rates have risen twenty-fold. Entire banks have failed. There are concerns about an impending recession. These clients include insurance companies, pension funds, and high-net-worth individuals. They are concerned about protecting their money in a time when the long-running bull market for equities could finally end abruptly as the macroeconomic environment deteriorates.

Gold’s history makes it a logical choice to be discussed when people talk about money protection. Bitcoin has also been discussed, it seems. Bitcoin acolytes have drilled into people’s heads the idea that bitcoin can act as a hedge against inflation with absolute, proven scarcity.

With the war in Ukraine, the need to protect yourself against geopolitical risks has also been brought to the fore. Bitcoin could also help in this area. BlackRock has taken bitcoin seriously because enough clients have brought it up.

Clients always have the right to demand bitcoin. If BlackRock and Larry Fink refuse this, then who are they? It did not become a $10 trillion assets manager by not listening.

Ben Schiller is the editor.