In his annual letter, Larry Fink, the CEO of asset management firm BlackRock, warned that the U.S. dollar could potentially lose its hegemony to Bitcoin.
Fink has sounded the alarm over the ballooning national debt in the U.S. that could threaten the greenback's long-standing reserve currency status.
According to the BlackRock boss, Bitcoin might emerge as a more preferable investment option than the U.S. dollar.
Decentralized finance could potentially "undermine" the economic advantage that the U.S. currently enjoys, according to Fink.
Alex DovbnyaBack in 2020, Fink stated that Bitcoin could potentially evolve into a global market.
In 2024, the asset management titan made waves with its widely successful Bitcoin ETF.
Last October, Fink said that he viewed said that he viewed Bitcoin as a gold alternative.
Looming debt crisis?
The U.S. national debt currently stands at $36.6 trillion, surpassing the size of the country's economy. Federal interest payments are expected to top $1 trillion in 2026.
U.S. lawmakers will then have to take action to address the debt limit by either raising or suspending it. According to the Congressional Budget Office, a potential default is looming this summer.
Tomiwabold OlajideEarlier this month, billionaire hedge fund manager Ray Dalio predicted that the U.S. could face a severe debt crisis in a few years from now.
Some pro-Bitcoin analysts argue that a high national debt could potentially devalue the dollar. Thus, it could benefit the leading cryptocurrency, which is viewed as digital gold and a hedge against inflation.
Meanwhile, Strategy cofounder Michael Saylor has argued that a U.S. strategic reserve could help reduce the national debt.
Vladislav Sopov
Dan Burgin