Larry Fink, Interview with Bloomberg
"Inflation, the Greatest Global Risk"
Larry Fink, CEO of BlackRock, the world's largest asset management firm, warned that inflation cannot be considered to have peaked and that such a judgment could pose a significant risk globally. He also expressed concerns about the depreciation of national currencies and suggested that Bitcoin could serve as a hedging tool.
Attending the World Economic Forum (WEF, Davos Forum) in Switzerland, CEO Fink said in an interview with Bloomberg on the 22nd (local time), "The biggest risk we face globally right now is believing that inflation has peaked."
He stated that his view contradicts the market consensus, adding, "I have actually seen scenarios where inflation could rise."
Regarding AI investment, he revealed that BlackRock is also participating in funding. CEO Fink said, "Building data centers requires massive financing," and added, "BlackRock is raising $30 billion together with companies like Microsoft."
He further emphasized the need to pay special attention to how data centers are powered.
He mentioned that discussions about the role of nuclear power are necessary to meet the surging electricity demand. CEO Fink said, "In the short term, data centers in the U.S. will be powered by gas and natural gas," and added that considering future electricity demand, discussions should begin on what role nuclear power might play.
CEO Fink also conveyed that he has come to the conclusion that cryptocurrencies are currencies of fear and can be used as hedging instruments.
He said, "If you worry about the depreciation of your national currency or fear domestic economic and political instability, you can have Bitcoin, an internationally based tool to overcome these domestic fears."
He added, "I was with sovereign wealth funds this week, and we discussed whether to allocate 2% or 5% of assets to Bitcoin. If everyone applies this, Bitcoin could reach $500,000, $600,000, or $700,000." However, he clarified, "I am not promoting Bitcoin."
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