✨ BlackRock: Bitcoin is Shifting Towards Risk-Off Assets
posted 25 Sept 2024
BlackRock’s Head of Digital Assets Robbie Mitchnick argues that Bitcoin is unfairly labeled as a high-risk asset. He believes the first cryptocurrency should be seen as a risk-free investment, suggesting that its reputation as a risk-on asset is a narrative pushed by certain voices in the crypto community.
Some of the crypto research type publications and daily commentaries have taken the fact that Bitcoin, which is obviously a risky asset and extrapolated it to say therefore it is a risk-on asset and should trade like equities,he added.
According to Mitchnick, Bitcoin represents an emerging alternative to traditional currencies, free from the conventional and geopolitical risks that other assets face. In contrast, truly high-risk assets, such as tech stocks or altcoins, only perform well in favorable economic conditions.
On the other hand, risk-free assets like gold and silver tend to be more profitable during times of uncertainty. Mitchnick believes that the significant price swings in Bitcoin every two to three years are driven by specific factors. BlackRock has previously referred to Bitcoin as a unique tool for risk management.
More breaking news
