Robbie Mitchnick is BlackRock’s director of digital assets. He says that Bitcoin was wrongly classified as an asset with “high risk”.
Mitchnick, in an interview with Bloomberg, said that crypto companies have misinterpreted Bitcoin’s risk profile by comparing its behaviour to that of stocks.
He explained:
Some crypto publications have taken Bitcoin’s inherent riskiness, and stretched it so that it’s an asset with ‘risk on’ like stocks.
He argues that Bitcoin’s drivers are different from traditional assets and stocks, sometimes moving the other way.
Bitcoin market dynamics is different from that of equities
BlackRock’s white paper on Bitcoin describes it as “uniquely diversifying” and offering protection from monetary risks.
Mitchnick emphasized that Bitcoin was a non-sovereign, decentralized asset without country or counterpart risks.
“He said”
When its fundamentals indicate that it is more of a low-risk asset, it can be confusing to label it as risky.
Tech stocks, commodities and other risk-on assets tend to thrive under favorable economic conditions. Risk-off assets such as government bonds and gold, on the other hand, tend to perform better during uncertain economic times.
Bitcoin does not fit into these definitions, said the expert.
BlackRock says Bitcoin is a risk on asset, but not a hedge
Mitchnick addressed the concerns about a change made to BlackRock’s iShares Bitcoin Trust ETF (IBIT), which now requires withdrawals within 12 hours from Coinbase. He called the upgrade a routine optimization.
He said that “nothing has really changed.” Such tweaks, he added, are part of the evolution of ETF.
Bitcoins to reach $1,000,000 by 2025: Bold prediction?
The crypto community is buzzing with excitement over a bold prediction made by analyst PlanB.
He says Bitcoin will hit $1,000,000 by 2025. In this scenario, Trump would win the US elections, end the crypto-war, and drive Bitcoin up to $100,000.
He predicts that Bitcoin will reach $400,000 by 2025 before investor FOMO drives it up to $1,000,000.
This forecast has sparked a lot of discussion, even though many people find it overly optimistic.
Coin Telegraph reported that one cryptocurrency trader stated, “If it happens, I will run naked on the street.”
Mitchnick, in spite of all the buzz, remains focused on fundamentals. He reiterates that Bitcoin is more valuable as a risk hedge than it is a speculation.
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