đăBitcoin: A unique decentralized assetăđ
BlackRock's latest report, "Bitcoin: A unique decentralized asset," reveals Bitcoin's unique role in an investment portfolio. The report points out that Bitcoin, as a "global, decentralized, fixed-supply non-sovereign asset," has great potential for diversification.
đ **Low-correlation asset**: Bitcoin has long shown low correlation with stocks and bonds, and although price fluctuations may be in sync with traditional risk assets in the short term, these are considered temporary phenomena.
âïž **Volatility and risk**: Bitcoin is considered a risky asset due to its high volatility, but its decentralized nature protects it from many macroeconomic forces.
đ **Long-term value**: As global currency instability and geopolitical tensions increase, Bitcoin's value may grow, and its fixed supply and borderless nature may drive future demand.
đ **Portfolio impact**: Moderate inclusion of Bitcoin can enhance diversification potential, but a larger proportion of allocation may increase portfolio volatility.
The report concludes that Bitcoinâs unique characteristics make it a hedging tool for geopolitical and economic uncertainty risks. đ
