BlackRock CEO Larry Fink said more people are buying crypto and gold because they are scared of losing money as government debts keep rising.
During a recent interview at the Future Investment Initiative (FII) conference in Riyadh, Saudi Arabia, he explained that “Owning crypto assets or gold are assets of fear,” he said, according to Bloomberg.
“You own these assets because you’re frightened of the debasement of your assets. You’re worried about your financial security. You’re worried about your physical security.”
Investors Turn to ‘Fear Assets’ Cause of Inflation
Fink’s remarks come at a time when investors are showing interest in what experts call the “debasement trade”, meaning away from government money and buying hard assets such as gold, silver, and Bitcoin.
In a statement, Fabian Dori, Chief Investment Officer at Sygnum Bank explained that the trend is happening because of weakening purchasing power caused by loose fiscal and monetary policies
“There are good reasons why private investors, banks, and institutions may start to hedge using Bitcoin,” he said. However, he warned that crypto’s price changes fast, so it needs better risk systems and needs to be monitored round-the-clock.
Global Debt Concern is on the Rise
According to data from the International Monetary Fund (IMF), America’s government debt will reach 143.4% of its total economy by 2030. That would be higher than debt levels in Italy and Greece.
The IMF also says the U.S. will keep a large yearly budget deficit above 7% of GDP until 2030. This number has made lots of investors panic, and many are trying to protect their money from possible inflation and weaker currency values.
Recently, Bitcoin hit a record high of over $126,000 before falling sharply after President Donald Trump threatened 100% tariffs on China. The crash wiped out about $19 billion in leveraged crypto futures, and Bitcoin briefly dropped below $110,000. Currently, the token is trading for $115,162, according to CoinMarketCap.
According to Fink, the U.S. still relies heavily on foreign investors to buy its Treasury assets. “We still are a nation that needs 30% to 35% of all our Treasury sales going overseas,” he said. Still, he added that many investors believe the U.S. will remain the best place to invest for the next 18 months.
Also Read: Trump Media Enters Prediction Markets with Crypto.com
