BlackRock: Due to Bitcoin's role as a store of value and payment system, it can become a potential diversification investment tool

ChainCatcher news, BlackRock released the "2025 Global Outlook" report stating that Bitcoin, with its fixed supply and demand growth driven by investor confidence in its widespread adoption as a payment technology, shows potential as a new type of diversified asset, with lower correlation to stocks and other risk assets. Emerging assets like Bitcoin and traditional assets like gold are expected to become new diversified investment tools. As demand increases and supply remains limited, the value of Bitcoin will continue to rise.

In fact, Bitcoin reached an all-time high after the U.S. presidential election, possibly due to investors considering the promises of elected President Donald Trump. Moreover, the widespread adoption of Bitcoin will fundamentally change the investment risk and return landscape. By then, Bitcoin may be better suited as a tactical hedge against certain risks (such as gold). In the past, investors bought gold to cope with high inflation, and as major central banks purchased gold as an alternative reserve currency, gold prices soared. It is crucial to understand how the performance of these alternative assets changes compared to traditional asset classes. Due to Bitcoin's role as a store of value and payment system, it can become a potential diversified investment tool.