Bitcoin is speculative and thriving due to anonymous nature, says BlackRock chief

Bitcoin, whose value has fluctuated significantly this month, remains a “speculative” investment that thrives because of the cryptocurrency’s anonymous nature, BlackRock Chief Executive Larry Fink said on Monday.

“The reason why it does so well is it is anonymous. It’s anonymous, and it’s cross-border,” Fink, whose firm oversees nearly US$6 trillion of assets, said at a 2018 Global Investment Outlook Summit. “If you legitimise it, you know who your counterparties are … the question is how many people will use it if you have to acknowledge you are a buyer or a seller.”

Fink called bitcoin a “very speculative instrument. More importantly, it is an instrument that people use for money laundering.”

The value of bitcoin plunged as much as 29 per cent from its November 8 record high of US$7,888 following the cancellation of a planned technology upgrade and amid persistent concern of a bubble. Bitcoin recouped some of its losses on Monday.

Investors who have held bitcoin for the long term have fared well.