Bitcoin outperformed all major asset classes in seven of the last ten years.
Bitcoin’s long-term return drivers do not correlate with other sources of portfolio returns.
Analysts expect Bitcoin to respond to the Fed’s upcoming monetary policy announcement.
Bitcoin has outshined all major asset classes in seven of the last ten years, while also experiencing the worst performance in the remaining three. This highlights the digital asset’s unique nature as an investment. In a whitepaper, leading investment company BlackRock emphasized how Bitcoin’s long-term return drivers aren’t connected to other sources of portfolio returns.
What Drives Bitcoin’s Returns?
According to BlackRock’s publication, Bitcoin’s core features allowed it to tackle money-related problems that have persisted for centuries. Some issues BlackRock highlighted include inflation and debasement, since Bitcoin’s supply is capped at 21 million units. The investment firm also pointed out how Bitcoin introduced digitally native and borderless transactions, allowing for near-instant, global transfers of value.
BlackRock highlighted how Bitcoin addressed the limited access problem of locali…
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