BlackRock CEO Larry Fink has cast doubt on the feasibility of employing Bitcoin for day-to-day transactions, highlighting its utility more as an asset class than a conventional currency.

In a CNBC interview, Fink restated his optimistic view of Bitcoin, positioning it primarily as an alternative avenue for wealth storage rather than a prospective substitute for traditional national currencies.

Larry emphasized, "I don’t believe it's ever going to be a currency. I believe it's an asset class." Despite his confidence in Bitcoin's future, Fink foresees the imminent rise of central bank digital currencies (CBDCs).

Recent data from Cointelegraph indicates that more than 100 countries are actively exploring the development of Central Bank Digital Currencies (CBDCs), with 39 countries participating in pilot programs, proof-of-concept initiatives, or have already launched CBDC projects.

Larry Fink's scepticism about Bitcoin as a currency might be influenced by valid concerns, one of them being Bitcoin's inherent volatility. In the past week alone, the price of Bitcoin dipped below $41,000, highlighting its unpredictable nature. Such volatility raises doubts about Bitcoin's suitability as a stable medium of exchange for everyday transactions. The practicality of using Bitcoin for routine buying and selling becomes questionable when its value is heavily influenced by price fluctuations and the forces of supply and demand.

Additionally, regulatory uncertainties in the cryptocurrency landscape contribute to the challenges surrounding Bitcoin as a mainstream currency. Given that the cryptocurrency market is still in its evolutionary stage, uncertainties in regulations may hinder its widespread acceptance and use. Fink's perspective gains credibility in recognizing that Bitcoin is a dynamic and evolving asset, subject to various external factors that may impact its potential role as a mainstream currency.

The scalability issues within the Bitcoin network could pose a significant obstacle to its adoption as a mainstream currency. Bitcoin encounters difficulties in handling a large volume of transactions efficiently. Our conventional financial system has undergone substantial development to reach its current state. For Bitcoin to surpass it, there would be a necessity for scalability upgrades. This potential limitation could impede its ability to function as a universally embraced cryptocurrency. Therefore, Fink's perspective may hold validity — Bitcoin might not evolve into a widely accepted currency, but it could effectively serve its purpose as an asset class.