If you’ve been following our updates this week, you’ll know we’ve been obsessed with dividends…
Income stocks are undeniably the name of the game right now, an avenue that you should absolutely consider for your own portfolio.
For the best picks to get you started, check out this brand-new report.
But today I must take a detour toward a very different kind of asset…
Bitcoin [BTC] and crypto are making some big headlines once more. Or rather, more specifically, Larry Fink — the CEO of BlackRock — is dragging it into the headlines.
In an interview with Fox Business news, he stated that bitcoin ‘could revolutionise finance’.
That’s not exactly a new sentiment for bitcoin believers, but it’s the fact that Fink said it that matters. Granted, he is likely putting on a big song and dance because he is fighting the SEC to approve his Bitcoin ETF.
Again though, that just goes to show how much he believes in the digital asset.
A fact that stands at complete odds with the Larry Fink of the past.
Because as many of his fellow financial elite have done, he once despised bitcoin.
So, let’s talk about what changed and how…
Fink’s pipeline
Fink’s first notable opinion on bitcoin began in October 2017 with this headline:
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| Source: CNBC |
Clearly, he wasn’t much of a fan at first…
And I get it, his whole career was built upon the success of traditional finance. Seeing something so new and so untested was always going to elicit scepticism.
When it comes to bitcoin though, it only makes sense once the way it works clicks in your head.
The trouble is, it’s not an easy concept to grasp because of how embedded traditional finance is. Banking and transactions as we know it haven’t really changed all that much for thousands of years.
Bitcoin and the introduction of the blockchain fly right in the face of that fact.
It’s the biggest disruption we’ve seen in finance for a long time.
That’s why, three years after his initial dismissal of bitcoin, Fink was becoming curious:
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| Source: MarketWatch |
A year after that, this ‘possibility’ turned into a more concrete belief.
He could now see a role for crypto:
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| Source: Twitter |
Then, by 2022, Fink had begun to really dip his toes in the water.
An investment in one stablecoin venture, Circle, was a major tipping point:
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| Source: Market Insider |
And now, in 2023, as I already mentioned, BlackRock is in the midst of seeking approval for its own bitcoin ETF. A milestone that has shown an incredible turnaround in Fink’s opinion of crypto.
He threw himself into the pipeline and came out a believer.
Which begs the question, should you follow suit?
More than just ‘FOMO’
To be clear, I think everyone should own at least a little bitcoin.
It doesn’t have to be much. Even just a single-digit percent of your portfolio is fine.
But as my colleague Ryan Dinse will tell you, he doesn’t believe you can afford to not be in crypto…
As he recently told his subscribers:
‘A lot of the people I helped bring into crypto during the 2017–18 bull run are vastly outperforming these same “professional” money managers.
‘And they’ve done it by ignoring the sceptics and vested interests who have attacked us every step of the way.
‘As frustrating as that can be at times, I actually love it when things are like that…
‘These same people will be the ones who buy in at some point in the future at a much higher price.
‘And we all know how scarce future supply is…
‘As the old crypto saying goes, everyone gets into bitcoin at the price they deserve.
‘Long story short, the fact so many professionals so easily dismiss crypto, even these days, is counterintuitively fantastic for us.’
This is the real takeaway for anyone right now. Because whether you’re a believer or a cynic, the fact of the matter is, as time goes on, more people will buy into bitcoin.
Larry Fink’s commitment is just the latest and most grandiose example. And as others follow his lead, the price will only continue to go up.
That is how bitcoin is designed and it’s why you can’t afford to ignore it.
It’s simply a question of whether you’re ready to buy now or buy later.
The sooner the better, in my opinion…
But everyone has to go through the pipeline at their own pace.
Regards,
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Ryan Clarkson-Ledward,
Editor, Money Morning
