"BTC emerges as a hedging asset to respond to government debt crisis"
“‘Risky Assets’ in a Time of Turbulence… Different from ‘Risky Assets’”
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BlackRock emphasized that BlackRock clients are currently purchasing Bitcoin as a hedging asset against the U.S. government debt crisis, noting its unique characteristics.
BlackRock's PPT said, "As concerns about the debt of the U.S. and foreign governments grow, concerns about the value of the U.S. dollar have expanded and demand for hedging assets against it has increased. The current $35 trillion in publicly disclosed debt by the U.S. government is spreading these concerns."
BlackRock highlighted Bitcoin as an alternative that could capitalize on the banking system, sovereign debt crises, currency devaluations, and geopolitical turmoil.
BlackRock's PPT stated that "Bitcoin has little fundamental exposure to the macroeconomic variables that affect many asset classes," and that "its limitedness, cross-border nature, and digital nature give Bitcoin its unique value."
At the end of the PPT, BlackRock explained that Bitcoin is a “risky asset” that is still going through a period of upheaval due to regulatory changes, but that it is a unique asset that can be distinguished from “risky assets.”
Reporter Kwon Seung-won ksw@
