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Bitcoin poised to take dollar’s throne amid debt surge, BlackRock’s Fink warns
The US dollar may be on the verge of losing its grip on global dominance, with Bitcoin emerging as a serious contender. Despite the greenback’s foundation in the strength of the American economy, pressure is mounting. According to BlackRock CEO Larry Fink, a shift is underway, with digital assets gaining ground. Still, the dollar is not stepping aside without resistance. Its reign is far from over, but Bitcoin is gearing up for a challenge.
Fink stands by his bold forecast, citing a range of factors. Chief among them is America's ballooning national debt. In 2024, the US government spent over $952 billion servicing its debt. If fiscal policy remains unchanged, interest payments and federal obligations are projected to exceed budget revenues by 2030. As Fink argues, this could pave the way for chronic deficits.
"If the US doesn’t get its debt under control, if deficits keep ballooning, America risks losing that position to digital assets like Bitcoin," he warned. In this scenario, decentralized financial systems could become increasingly relevant. These platforms offer speed, transparency, and broader accessibility, though they also come with higher volatility risks.
Fink also pointed to the transformative potential of asset tokenization. Through tokenization, traditional instruments such as stocks, bonds, and real estate can be digitized, unlocking new opportunities for investors.
According to the BlackRock CEO, blockchain technology simplifies asset ownership and expands access to high-yield investments. This could revolutionize financial markets and attract a new wave of investors, he believes.
Fink previously suggested that Bitcoin could skyrocket to a staggering $700,000 if retail and institutional investors alike allocated just 2% to 5% of their portfolios to the first cryptocurrency.
© InstaFintech Group
