$9 Trillion BlackRock Chooses Bitcoin for Fed Dollar Crisis Protection
The $9 trillion asset management business BlackRock has chosen Bitcoin as a hedge against a Federal Reserve currency crisis, supporting the idea that Bitcoin may represent the future of finance.
BlackRock, the world's biggest Bitcoin fund and asset manager, warned of economic fallouts from the $35 trillion US debt pile.
According to a new BlackRock study, investors are increasingly considering alternatives to the US dollar due to worries about rising fiscal deficits and debt. This move affects the US and other economically suffering nations with high debt.
Bitcoin is seen as a cushion for a $35 trillion federal reserve dollar catastrophe. BlackRock has stressed the relevance of Bitcoin in this catastrophic economic situation as US debt grows by billions.
As investors worry about fiat currencies like the dollar, many are interested in Bitcoin as a hedge. BlackRock, which has over $10 trillion in AUM, also distinguished Bitcoin from other “risk assets.”
Despite Bitcoin's short-term price connection with stocks and other risk assets, the asset manager indicated that its long-term fundamental drivers are quite distinct from most conventional assets. To clarify, Bitcoin hedges geopolitical, fiscal, and monetary risks.
In a world of financial volatility and political upheaval, BlackRock sees Bitcoin as a unique investment that might safeguard against economic dangers. Due to its decentralized and non-sovereign monetary structure, investors have seen it as a “flight to safety” throughout fearful global events during the previous five years.
Bitcoin might safeguard against the Fed currency problem, but BlackRock warns that it is very dangerous. According to the asset manager, Bitcoin is a new financial technology in its early phases of worldwide acceptance.
Due to regulatory issues, immature infrastructure, and worldwide acceptance issues, cryptocurrencies are volatile and risky.
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