BlackRock CEO Fink warns Bitcoin may topple U.S. dollar as MicroStrategy's Saylor predicts $500 trillion m-cap

At a time when the Trump administration is fully backing the crypto industry in the US, BlackRock CEO Larry Fink, in a letter to shareholders, has warned that Bitcoin (BTC) could eat away at the U.S. dollar’s reserve status.

What makes Fink think so? The BlackRock chief, who heads the world's largest asset manager, with assets under management (AUM) reaching a record $11.6 trillion, says if the U.S. doesn’t get its debt under control, if deficits keep ballooning, America risks losing that position to digital assets like Bitcoin.

"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," Fink says in his latest annual letter to shareholders.

Fink asserts that the US' national debt has grown at three times the pace of GDP since Times Square’s debt clock started ticking in 1989. "This year, interest payments will surpass $952 billion— exceeding defense spending. By 2030, mandatory government spending and debt service will consume all federal revenue, creating a permanent deficit," said Fink.

Not to come out as anti-Bitcoin, especially at a time when US President Donald Trump has revealed big plans, including setting up a crypto strategic reserve, Fink clarified he is not anti-digital assets, but says two things can be true at the same time: Decentralised finance is an extraordinary innovation. "It makes markets faster, cheaper, and more transparent. Yet that same innovation could undermine America's economic advantage if investors begin seeing Bitcoin as a safer bet than the dollar," he warns.

Fink’s letter amid economic uncertainty arising out of Donald Trump's policy shifts, including tariff wars and initiatives launched by his DOGE department. Fink asked investors to diversify portfolios and also look at adding private market assets, which he believes will help the country balance out the deficit.

He said tokenisation allows for fractional ownership and that every stock, every bond, every fund, every asset can be tokenised. "If they are, it will revolutionise investing. Markets wouldn't need to close. Transactions that currently take days would clear in seconds.”

That means assets could be sliced into infinitely small pieces, he said. "This lowers one of the barriers to investing in valuable, previously inaccessible assets like private real estate and private equity.”

Separately, in a bold statement, Michael Saylor, Executive Chairman and Co-founder of MicroStrategy, said Bitcoin's m-cap could one day hit $500 trillion and surpass gold, real estate and other tools as the most preferred investment asset.

Saylor's statement comes amid a significant move by his company, Strategy (formerly known as MicroStrategy), which has acquired an additional 22,048 BTC for $1.92 billion, bringing its total holdings to 528,185 BTC. This purchase was primarily funded through the issuance of common stock, reflecting the company's ongoing commitment to its Bitcoin acquisition strategy.

Saylor, during the Digital Asset Summit 2025 in the U.S. last week, said that when Bitcoin's m-cap will jump to $200 trillion, it'll continue to grow at a rate of 20%, eventually reaching $300 trillion, $400 trillion, or $500 trillion. Saylor is the Executive Chairman of Strategy (MSTR), a publicly traded business intelligence firm & holder of 499,096 Bitcoins.

As per CoinDesk data, the current m-cap of Bitcoin (BTC) stands at $1.6 trillion, making it the most valuable cryptocurrency in the world. BTC is currently trading 2.36% up on a 24-hour basis at $84,161.52. CoinSwitch market data shows the digital asset experienced fluctuations throughout the day on Monday, reaching an intraday high of $83.8K and a low of $81,300.