BlackRock, the world’s largest asset manager, revealed that its clients are increasingly turning to Bitcoin as a hedge against the growing U.S. debt crisis. While Bitcoin is often labeled as a risky asset, BlackRock analysts suggest it functions more like “insurance” against potential economic upheavals, driven by concerns over federal deficits and debt.

Bitcoin as a Hedge, Not a Risk Asset

In a recent presentation, BlackRock emphasized that Bitcoin’s unique characteristics—such as its limited supply, global nature, and ease of cross-border transfer—make it a hedge against risks like banking crises and currency debasement. The U.S. is currently burdened with $35 trillion in debt, and BlackRock’s clients view Bitcoin as a safeguard against further economic instability.

Growing Institutional Interest

BlackRock attributes the recent surge in institutional interest to the growing worries about U.S. economic stability. The firm noted that Bitcoin is increasingly being viewed as a "non-sovereign monetary alternative," detached from the crises that typically affect traditional financial assets.

Bitcoin’s Growing Adoption

BlackRock believes that Bitcoin’s adoption will continue to rise, especially in times of economic uncertainty. Despite being classified as a “risky” asset due to regulatory hurdles and its relatively young market, BlackRock sees Bitcoin as an essential tool for navigating financial crises in the future. Source
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MicroStrategy Plans $700 Million Note Sale to Buy Bitcoin and Repay Debt