BlackRock, one of the world’s largest asset managers with $10.5 trillion under management, highlighted the prospects of AI and Bitcoin as diversifiable assets in its “Global Outlook for 2025” report.
AI — More Transformative Than the Industrial Revolution
Artificial intelligence has the potential not only to enhance efficiency in specific tasks but also to accelerate the generation of new ideas and discoveries, with far-reaching implications for economic growth and structure. This transformation could surpass the industrial revolution, the document states.
“The vast potential of AI is driving a wave of innovation and investment. The rapid evolution presents significant opportunities, but the trajectory of the ultimate transformation is not defined,” the report states.
Experts emphasized that the industry is still in the development phase of artificial intelligence, and investments in this infrastructure could exceed $700 billion by 2030 — 2% of the US GDP.
Bitcoin — A Promising Diversifier
BlackRock sees potential in Bitcoin as a new tool for diversification alongside gold.
The potential of this new class of digital assets is driven by its unique factors, including the possibility of growth over time. The price increase is linked to a predetermined supply of coins and growing demand, which is based on investors’ belief in the cryptocurrency’s potential as a payment tool.
The asset’s rise to record highs following the US elections reflects the prospect of widespread Bitcoin adoption, considering the support of elected President Donald Trump. These drivers will make Bitcoin less correlated with stocks and other risky assets in the long term, analysts noted.
The risk profile and return of Bitcoin will change if it indeed achieves widespread adoption. In this regard, it is more akin to gold — a tactical hedge against certain risks.
“Bitcoin’s role as a store of value and payment system makes it a potential diversification tool,” noted CIO for ETFs and index investments at BlackRock, Samara Cohen.
Regarding the overall macroeconomic situation, inflation will remain high due to rising wages and large investments in the artificial intelligence sector. Therefore, the Fed rate will remain significantly above pre-pandemic levels, analysts believe.
Back in October, BlackRock CEO Larry Fink expressed confidence in Bitcoin’s growth.