BlackRock Executive Describes Bitcoin as a Risk-Free Asset

The primary cryptocurrency is mistakenly classified as a risky asset, despite its frequent correlation with the stock market. This perspective was shared by Robert Mitchnick, head of BlackRock’s crypto division, in an interview with Bloomberg.

This category typically includes investments that show consistent returns in favorable market conditions of economic growth. Generally, these are shares of technology companies, certain commodities, and most digital currencies.

Alternatively, there are investments that perform well during market uncertainty or economic downturns. These include, for example, gold, silver, government bonds, and the US dollar.

“If you look at it fundamentally, the drivers of bitcoin in the long term are very different from what will drive stocks and other so-called risky assets, and in some cases, these factors may even be inverse,” Mitchnick believes.

According to him, the narrative regarding digital gold was created by the crypto community itself, which can partly be called an “own goal.”

“When we talk about bitcoin, we think of it primarily as an emerging global alternative monetary right. It is a scarce, global, decentralized non-sovereign asset, not tied to any specific country and devoid of traditional counterparty risk,” Mitchnick emphasized.

However, these same properties confuse investors, who mistakenly perceive them as risk factors, the expert acknowledged.

Earlier, BlackRock specialists in an analytical report described the primary cryptocurrency as a “unique diversifier” and a tool for hedging global risks.