Why Are People Investing in Crypto and Gold?

Investors are turning to crypto and gold as a way to protect themselves from financial instability. This shift is happening because people are worried about the value of their money decreasing due to government debt and economic policies. Larry Fink, the CEO of BlackRock, has noticed this trend and described these investments as "assets of fear. " He believes that people are buying these assets because they are concerned about the future of their money and their safety. Fabian Dori, the Chief Investment Officer at Sygnum Bank, agrees with this view. He points out that investors are moving away from traditional currencies and into assets like gold and Bitcoin. This is because the value of money is not as strong as it used to be, especially in the United States. Dori also warns that investing in Bitcoin requires careful management due to its constant price fluctuations. The concerns about the economy are not unfounded. The U. S. government's debt is expected to reach record highs, surpassing levels seen in countries like Italy and Greece. The International Monetary Fund (IMF) predicts that the U. S. budget deficit will remain high for the next decade, which is a cause for concern among investors. Larry Fink's views on crypto have changed significantly over the years. In 2017, he was skeptical of cryptocurrencies, but now he sees them as a valid investment option. He believes that crypto, like gold, can serve as an alternative asset for investors who are worried about the economy. With BlackRock managing trillions of dollars in assets and operating one of the largest crypto ETFs, Fink's opinions have a significant impact on the market. Nic Puckrin, a crypto analyst, adds that Bitcoin was initially seen as a response to the 2008 financial crisis. However, it has since evolved into a bet on the future of blockchain technology and a new financial system. Despite this, there is still uncertainty about crypto's volatility and its performance compared to gold.