Statements on Bitcoin from BlackRock CEO Larry Fink, who manages 11.5 Trillion Dollars: "If the debt crisis is not resolved, BTC..."

BlackRock CEO Larry Fink warned that if the country fails to resolve its growing debt crisis, the U.S. dollar risks losing its status as the world's reserve currency to digital assets like Bitcoin.

In his annual letter to investors today, Fink highlighted the rapid expansion of the national debt in the U.S. and the increasing burden of interest payments as significant threats to the dollar's global dominance.

Fink pointed out that since the introduction of the Times Square debt clock in 1989, the U.S. national debt has increased at a rate three times that of GDP growth. Just this year, interest payments on the national debt are expected to exceed 952 billion dollars, surpassing the country's defense budget. He warned that if this trend continues unchecked, mandatory government spending and debt servicing could consume all federal revenue by 2030, creating a permanent deficit.

While expressing support for digital assets, Fink also warned that the rapid growth of these assets could weaken the economic advantage of the U.S. "I am not against digital assets in an obvious way," he said, adding: "However, two things can be true at the same time: Decentralized finance is an extraordinary innovation that makes markets faster, cheaper, and more transparent. However, the same innovation could lead investors to see Bitcoin as a safer asset than the dollar."

The CEO of BlackRock also mentioned BlackRock's recent success in the cryptocurrency space, stating that the US spot Bitcoin exchange-traded fund (ETF) IBIT is the largest ETF launch in history. In less than a year, IBIT has amassed over 50 billion dollars in assets under management. The ETF is currently the third largest asset collector in the sector, following only S&P 500 index funds. Fink stated that more than half of the demand for IBIT came from individual investors and that three-quarters of the buyers had never owned any iShares products before.

Earlier this year, Fink predicted that if investors allocated only 2% to 5% of their portfolios to Bitcoin, the price of BTC could eventually reach $700,000.

Fink stated that tokenization, a process that allows real-world assets such as stocks, bonds, and real estate to be digitized and traded on blockchain networks, has transformative potential beyond Bitcoin. He likened this change to the transition from letters to email, arguing that tokenization could significantly enhance market efficiency.

Fink said, "Every stock, every bond, every fund, every asset can be tokenized" and added: "If they do, it will mean a revolution in investment. There will be no need for markets to close, transactions that currently take days will occur in seconds, and billions of dollars that are currently stagnant due to settlement delays can be reinvested into the economy immediately, leading to further growth."

Fink also noted the role of tokenization in democratizing investment by allowing for fractional ownership, easier shareholder voting, and broader access to higher-yielding assets. He believes this innovation could bridge the gap between public and private markets, enabling smaller investors to access opportunities traditionally reserved for the wealthy.

Despite acknowledging widespread economic concerns, Fink offered reassuring messages to investors that such periods of uncertainty are not new. He pointed out that financial markets have historically overcome turbulence due to human resilience and the strength of capital markets. He urged policymakers to focus on sustainable financial strategies while embracing financial innovation to maintain economic stability.