On September 19, BlackRock, the world's largest asset management company, recently released a 9-page white paper detailing Bitcoin's unique status as a major asset class.
The white paper points out that Bitcoin is not only a "unique diversification tool", but also difficult to evaluate using traditional asset analysis methods. BlackRock emphasizes that Bitcoin is "almost immune to the macro factors that affect most traditional asset classes", which makes its performance and price prediction challenging. Although Bitcoin is still considered a "high-risk" asset, it has outperformed all other major asset classes in 7 of the past 10 years.
BlackRock believes that the volatility of Bitcoin prices partly reflects its evolving prospects as a global currency alternative. The white paper also mentions that because Bitcoin appears to be independent of global macro factors, some investors see it as a "safe haven" option amid geopolitical tensions.
