“The first cryptocurrency is mistakenly classified as a risky asset, despite its frequent correlation with the stock market. This opinion was presented in an interview with Bloomberg by the head of the crypto division of BlackRock, Robert Mitchnik. This category usually includes investments that demonstrate stable profitability in favorable market conditions of economic growth. As a rule, these are the papers of technology companies, some commodities and most digital currencies. The alternative is investments that perform well during the market […]”, — write: businessua.com.ua
The first cryptocurrency is mistakenly classified as a risky asset, despite its frequent correlation with the stock market. This opinion was presented by the head of the crypto department in an interview with Bloomberg BlackRock Robert Mitchnik.
This category usually includes investments that demonstrate stable profitability in favorable market conditions of economic growth. As a rule, these are the papers of technology companies, some commodities and most digital currencies.
The alternative is investments that perform well in times of market uncertainty or economic downturns. These include, for example, gold, silver, government bonds and the US dollar.
“If you look at it fundamentally, the long-term drivers of Bitcoin are very different from what will drive stocks and other so-called risk assets, and in some cases these factors may even be inverse,” Mitchnik said.
According to him, the narrative about digital gold was created by the crypto community itself, which can partly be called “self-goal”.
“When we talk about Bitcoin, we think of it first and foremost as an emerging global alternative monetary right. This is a scarce, global, decentralized non-sovereign asset, not linked to any specific country and devoid of traditional counterparty risk,” Mitchnik emphasized.
However, these same properties confuse investors, who mistakenly perceive them as risk factors, the expert admitted.
We will remind, BlackRock experts in the analytical report called the first cryptocurrency a “unique diversifier” and a tool for hedging global risks.
The source