- Horsley highlights Bitcoin’s appeal as a decentralized, debasement-resistant store of value for nations.
- Bitcoin is gaining traction as a reserve asset for countries like the US, China, and the UK.
- BlackRock CEO Larry Fink warns that US debt could weaken the dollar, highlighting Bitcoin as a potential alternative.
Bitwise Investment Company CEO Hunter Horsley believes countries may dump US assets for a more decentralized store of value like Bitcoin. His comment comes amid the surging US debt profile, tanking global finianical market, and ongoing regional trade war.
More Nations Could Embrace Bitcoin as a Reserve Asset
In a recent X post, Horsley remarked that nations are losing interest in US assets and may move to BTC as a store of value. He pointed out the advantage of owning BTC as a reserve asset over other alternatives.
Horsley explained that weaker currencies are prone to debasement, while traditional assets like gold are difficult to store and transport. In light of this, Bitcoin is becoming the preferred wealth storage method for some countries because it is free from centralized control and easy to hold.
Horsley said:
You look around, and you see it: an asset that can’t be debased, is controlled by no country, and that you can take into your possession immediately. You wind up buying Bitcoin.
Bitcoin has become a financial hedge for large institutions, with several countries adding it to their national asset reserves. According to data from Bitcoin Treasuries, US, China, and the UK are the countries with the largest Bitcoin holdings.
The US government currently holds about 207,189 BTC, valued at $15.8 billion. China follows closely with 194,000 BTC worth $14.8 billion. The United Kingdom also owns significant amounts of Bitcoin, which totals 61,000 BTC ($4.65 billion). Other countries with notable amounts of Bitcoin are Ukraine, Bhutan, El Salvador, Finland, and Georgia.
Fink Warns U.S. Debt May Threaten Dollar Dominance, Highlights Bitcoin as Alternative
Blackrock CEO Larry Fink has warned that America’s surging debts could weaken the dollar’s position as the number one reserve currency globally. In a recent Fortune report, Fink argued that decentralized solutions like BTC could replace the US dollar if the rising debt trend persists.
He stated in a later to investors:
The U.S. has benefited from the dollar serving as the world’s reserve currency for decades. But that’s not guaranteed to last forever.
America’s national debt figure is over $36.2 trillion. Fink asserts that this heavy debt profile could cause investors to lose interest in the USD and seek an alternative store of value solution.
The Blackrock CEO has been a vocal supporter of Bitcoin in the past year as his company launched a spot Bitcoin exchange-traded fund (ETF). At present, Blackrock is the largest BTC ETF, managing $48 billion in assets.
The fund has also cast its net into the tokenization sector. Its tokenized money market fund, BUIDL, currently spans seven networks and has amassed over $1.7 billion in assets under management. As of press time, Bitcoin trades at $77,175 following a 2.15% intraday slip. In yesterday’s session, the coin dropped to the $74,500 bottom before briefly rallying to the $81,200 mark. Crypto analyst Ali Martinez revealed that 1715 whale transactions of over $1 million each occurred within that short period.
