Larry Fink rekindled the debate. Is Bitcoin above all an everyday currency, or a reserve of value?
In short
- Larry Fink does not see Bitcoin replacing the Fiat system.
- Bitcoin is rather digital gold allowing to protect oneself from the devaluation of Fiat currencies.
- Why could Bitcoin not completely replace the Fiat system?
Bitcoin, digital gold
For the CEO of BlackRock, Bitcoin, it is gold, and not a substitute for national currencies. “I became an supporter of Bitcoin. Not as everyday currency, but as digital gold ”he said.
Bitcoins are accumulated when we are afraid for your country, when you are afraid that the national currency will lose its value.
Larry Fink, CEO of BlackRock
However, everyone knows that national currencies are constantly losing their value. 10,000 dollars in 2015 today allow you to buy for only $ 5,980 in goods. Or a loss of 40 % purchasing power in just ten years …
Knowing that the dollar is one of the strongest currencies in the world! The bill is much more salty in Türkiye, Argentina, Egypt, Venezuela, Lebanon, Nigeria, etc. There, inflation is two figures, and even three figures over the decade.
Bitcoin is a revolution in the sense that it withdraws from the richest the exclusive privilege of taking advantage of inflation, while the least wealthy suffer it. The reason being that it is possible to buy for 100 euros in Bitcoin, when it takes hundreds of thousands of euros to access rare assets such as prestigious real estate, works of art, good stock markets, etc.
Why would Bitcoin compete with prestigious real estate? Because it is a technological breakthrough having offered the world for the first time a liquid asset (unlike real estate or the Mona Lisa) existing in absolutely finished quantity.
While inflation has always benefited the wealthy wealthy, Bitcoin turns everything upside down. Everyone can now protect their savings from the first euro.
Why doesn't Larry Fink think Bitcoin can replace national currencies? Response in the third part.
Endless monetary devaluation
Larry Fink knows that the devaluation of national currencies is not about to stop. You just have to look at the world's greatest economy to be convinced.
There American federal debt has increased by $ 1,000 billion in the last 50 days. Or 21 billion dollars per day.
The United States has recorded a deficit of $ 291 billion for the month of July 2025 alone. It is very simple, the level of public spending compared to GDP is similar to the levels reached during the Second World War and the 2008 crisis.
The budget deficit is up 7 % compared to 2024. It already reached $ 1,630 billion, which places 2025 on the right track to record the third largest deficit in the history of the United States.
In total, the debt is now close to $ 37,000 billion, or $ 108,000 per person. Europe is not to be outdone. The debt per French is 51,000 euros (~ $ 60,000).
This flight forward is the rule almost all over the world. The problem is that the money supply has increased an average by 7 % per year for a century (in the United States) when growth no longer follows.
From 1970 to 1980, GDP growth in advanced countries rose from 3.75 % to 3.25 %. Then 2.75 % in the 1980s to 1990s, 2.25 % in the 1990s to 2000, 1.75 % in the years 2000 to 2010, and finally 1.25 % from 2010 to 2020.
We are no longer able to put enough growth in the face of monetary creation. Hence the acceleration of inflation and the planetary success of Bitcoin.
Is Bitcoin not a currency?
Of course, if, notably thanks to the Lightning Network. Bitcoin payments are as easily made as card payments. Many companies accept it, but it is true that it is far from being the case everywhere. For several reasons.
The first is that it is necessary to pay transaction costs often painful to buy bitcoins. Getting rid of your euros first allows you to save money.
The second is that Bitcoin cannot really replace the banking system which is essential for complex companies (nuclear power plants, semiconductor factories, satellite constellations, trains, planes, etc.).
The ability to be able to create money ex nihilo and destroy it at the time of reimbursement is the cornerstone of any economy. Without this monetary tool, farewell to nuclear power plants, railways, and even access to land ownership. Clearly, everything that is very expensive and whose damping is spread over years.
We could not build an advanced civilization without a banking system. We need a “fractional reserve system” which, by definition, cannot exist if the amount of money is fixed.
On the one hand, the money supply must be elastic and, on the other hand, permanently increase. For what ? So that each economic actor can find in the magma of the economy enough money to reimburse his loan, plus interest. It is this accounting imperative that means that the Fiat system must be a Ponzi.
This is why Larry Fink does not think that Bitcoin can replace national currencies. We need two currencies. One to invest, one to save.
Bitcoin does not need to replace the entire monetary system to succeed. Don't miss our article: The Bull Run continues!
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