In 2023, the news that shocked the financial markets was the announcement that BlackRock had officially filed for a spot Bitcoin ETF. It was a complete reversal of their previous negative stance on $BTC . In that one moment, everything changed for Bitcoin.But why did Larry Fink and BlackRock change their opinion on Bitcoin so quickly? It leads us to wonder, What does BlackRock know that we don’t?
BlackRock Does Everything for a Reason.
BlackRock; is the largest financial asset fund manager in the world, managing over $10 trillion. Because of this, they are one of the most influential and powerful companies in the world. Analysts have gone so far as to even describe BlackRock as the secret company that controls the world.
Whether all of that is true is debatable, but there is no denying that BlackRock knows things that other companies do not. They know things that are about to happen and where the future is heading towards.
A handful of years ago, Larry Fink, the CEO of BlackRock, said, “If you want to hedge hope, Bitcoin is not an instrument for hope.”
Fast-forwarding to 2024, he is one of the biggest advocates for Bitcoin and its future. The sudden change is very interesting and should pique your interest if you are an investor. After all, BlackRock is the blueprint for asset managers around the world. People pay attention to what they are doing and saying. They know something.
Before BlackRock made its Bitcoin ETF application public, 2023 was a dreadful year for Bitcoin and crypto. We were just coming off of the FTX fraud that many were claiming it would take the crypto industry several years to recover from. If that weren’t enough, the Biden administration in the US had seemingly made the crypto market enemy number one. Led by Elizabeth Warren, “Chokepoint 2.0” had been put into action with hopes of ending the crypto industry in the United States.
The head of the SEC, Gary Gensler, was handing out lawsuit after lawsuit. All the while, the government was printing exorbitant amounts of money, and inflation began going through the roof.It was at that precise moment that the news of Blackrock’s ETF application became public, and it completely changed the trajectory of Bitcoin this cycle.
What BlackRock Knew
BlackRock clearly saw something that most Americans don’t want to admit.
The Dollar is failing, and the United States is in rapid decline.
At this point, the US is trying its best to simply delay the inevitable. In the last decade since President Obama was in office, the US national debt has nearly tripled. Currently over $35 trillion. With how large the debt is and how quickly it continues to grow, paying it off is becoming more impossible by the day.
Almost any other nation would have already collapsed, yet the US is in a unique position that it is the owner of the world’s reserve currency. Up until now, it has been able to print as many dollars as it needs without too many consequences.
However, that can not last forever. It is like putting a bandage on a water leak. It may hold a while, but its failure is inevitable. The US has begun to see a glimpse of this, with inflation ravaging the country throughout the last few years. Even countries around the world have begun to take notice and have started moving away from the dollar.
Saving in dollars is no longer the safe haven that it once was. From here on out, your hard work will only continue to be inflated away, and it will become much more challenging to build wealth.
