The general director of Blackrock Larry Fink said something for many shocking: by the growing debt, the US authorities can lead investors to escape towards Bitcoin, which will threaten the global dominance of the US dollar.
Bitcoin will replace the American dollar
According to the director of Blackrock Larry Fink, the American dollar may lose the status of the world reserve currency in favor of … Bitcoin. Cryptocurrency fans will owe this to the US government, which generates a record public debt.
Fink wrote his revelations in the annual letter to investors. Apart from the above, he stated that “decentralized finances are an extraordinary innovation”, which makes investments “faster, cheaper and more transparent.” However, “the same innovation may undermine America’s economic advantage if investors begin to perceive Bitcoin as a safer investment than a dollar.”
US debt is an increasing problem
Moody’s Ratings maintains the US credit rating at AAA level, but reduced its perspective to a negative, which indicates a possible reduction in the future. According to Trading Economics, the US debt accounted for as much as 122.3% of the country’s domestic gross product in 2023. In 2018, it was “only” 105%. The joint Economic Committee of the US reported that as at March 5, the country’s gross national debt was USD 36.2 and USD over the past year has grown by around USD 4.9 billion per day. Bipartisan Policy Center already warns that the United States can announce insolvency soon because in … July 2025.
Of course, the announcement of insolvency by the US is in practice still very little real, but in the long run, as the history of e.g. pre -revolutionary France shows, it is only a matter of time. Probably Donald Trump recently introduced a lot of chaos to the markets to reduce the profitability of American bonds (capital escapes from shares to bonds), which will allow his country to get cheaper cheaper and continue to roll the debt.
The issue of tokenization of assets
I will return to what Fink wrote in a tokenization letter. In his opinion, it is a technological innovation that “enables immediate buying, selling and transferring (capital) without bothersome documents or waiting periods.” If each asset is sticenized, he passed on, “it revolutionizes investing.”
Markets will not have to close. Transactions that are currently ongoing days will be implemented in a few seconds. And billions of dollars, which are currently immobilized due to delays in settlements, could be invested in the economy immediately again, generating a greater increase
he added.
In addition, toketenization democratizes access to markets – it is not just about trading in assets, but also the voting process of shareholders.
According to RWA.XYZ, the tokenized real assets market (RWA) is now worth $ 19.6 billion. Currently, there are about 93,000 owners of such assets and 174 issuers. Already in 20230, however, the value of the market may jump to a range of USD 4 to 30 trillion, of course depending on many political factors.
You can buy Bitcoin and other cryptocurrencies in a simple and safe way on the Zondacrypto stock exchange.
