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BlackRock, the world’s largest asset management company, explained in its new report why Bitcoin has a unique place in investment portfolios and reminded us of a famous quote by Warren Buffett. The report of the company, which manages approximately $10 trillion in assets, emphasized that Bitcoin has different risk and return factors than traditional asset classes. The report prepared by BlackRock Digital Assets Unit President Robbie Mitchnick and his team emphasized that Bitcoin is an attractive option for investors as a decentralized, fixed-supply and non-state-controlled asset.
The report stated that despite short-term fluctuations, they believe that Bitcoin has a low correlation with traditional assets in the long term. The company explained with examples that Bitcoin has recovered rapidly after sharp declines in global markets, and stated that these recoveries are due to Bitcoin’s basic features.
In this context, BlackRock also reminded Warren Buffett’s famous words: “The stock market is a tool for transferring money from the impatient to the patient.” The company stated that the Bitcoin market has a similar structure.
The report also stated that Bitcoin can be seen as a risky asset due to its volatility, but that Bitcoin’s risk and return elements are different from traditional assets. It was emphasized that this situation is due to factors such as Bitcoin’s lack of state control, its decentralized structure and its scarce supply. It was also stated that some investors began to see Bitcoin as a “flight to safety” tool during geopolitical events.
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According to BlackRock, Bitcoin’s fixed supply of 21 million units means that it cannot be easily devalued. In addition, thanks to its global and digital structure, Bitcoin can be transported anywhere in the world at almost zero cost and overcomes barriers to value transfer between political borders. Its decentralized and permissionless structure makes Bitcoin the world’s first truly open-access monetary system.
The report stated that although other cryptocurrencies have turned to different areas of use, Bitcoin still stands out as a global money alternative and a reliable scarcity tool, and that these features give Bitcoin a unique position in the crypto world.
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