Despite the recent meltdown of FTX, Larry Fink, CEO of prominent investment firm BlackRock, believes that the technology underlying cryptocurrencies are still essential for the future.
Reuters cited Fink as saying, they are going to have to wait and watch how this all plays out [with FTX]. They can currently make all of the determinations, and it appears that there were serious penalties for the misbehaviors.
Fink went on to say that the bulk of crypto businesses are not going to be around in the future.
Fink stated that despite all of the problems brought on by FTX’s bankruptcy, he believes blockchain technology “will be very essential.”
The businessman predicted that the tokenization of securities would be the next generation of markets and securities.
Fink presented a bleak picture of the US economy’s prospects, citing high-interest rates, rising inflation, and the limited potential for fiscal aid.
In fact, he thinks they are about to enter a more malaise-like phase, added the executive. Simply said, we will not have the actual growth-based economy that we have become accustomed to.
It is significant that Elon Musk, the CEO of Twitter and Tesla, recently provided a similarly pessimistic outlook for the U.S. economy.
The billionaire entrepreneur called the current economic trajectory in America “concerning” in response to a tweet from a user who predicted a true economic catastrophe in 2023 and advised people to be ready for any impending macro storm.
Because musk believes that the United States may be poised to experience a severe recession, He is pleading with the Federal Reserve (FED), the country’s central bank, to immediately decrease interest rates.
The trend is alarming. The Fed must reduce interest rates right away. He said that they are considering raising the likelihood of a severe recession.
Ironically, despite all the warning indications, the Fed still expects positive GDP growth for next year. However, they repeated the action in 2008. Sven Henrich, the founder and chief market strategist of NorthmanTrader, concurred with Musk that once the impact of the crisis is felt, they will panic for lower rates, and then lay the blame on unanticipated sources.
