BlackRock: Bitcoin, as a new type of diversified asset, will continue to increase in value

According to the "Global Outlook 2025" report recently released by BlackRock, Bitcoin has shown potential as a new type of diversified asset due to its fixed supply and demand growth driven by investors' confidence in its widespread adoption as a payment technology. It has low correlation with stocks and other risky assets. It is expected that Bitcoin and other emerging assets, along with traditional assets like gold, will become new diversified investment tools. With increasing demand and limited supply, the value of Bitcoin will continue to rise.

In fact, Bitcoin hit a record high after the U.S. presidential election, possibly because investors took into account President-elect Trump's promises. In addition, widespread adoption of Bitcoin will completely change investment risks and returns. By then, Bitcoin may be more suitable as a tactical hedging tool against certain risks (such as gold). In the past, investors bought gold to cope with high inflation; with major central banks buying gold as an alternative reserve currency causing soaring prices for it. Compared to traditional asset classes understanding how these alternative assets perform is very important. Due to bitcoin's role as a store of value and payment system it can become a potential diversification investment tool.