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BlackRock: Bitcoin Could Be a Potential Diversified Investment Vehicle

BlackRock released its "Global Outlook 2025" report, saying that Bitcoin, with its fixed supply and growing demand driven by investor confidence in its widespread adoption as a payment technology, shows potential as a new type of diversified asset with low correlation to equities and other risky assets. Emerging assets such as Bitcoin and traditional assets such as gold are expected to become new diversified investment vehicles. Bitcoin's value will continue to increase as demand increases and limited supply increases. In fact, Bitcoin hit an all-time high after the US Presidential Election, probably because investors took into account the promises made by President-elect Donald Trump. Moreover, the widespread adoption of Bitcoin will revolutionize the investment risk and return profile. By then, Bitcoin may be better suited as a tactical hedge against certain risks, such as gold. In the past, investors bought gold in response to high inflation, which skyrocketed as major national central banks bought gold as an alternative to reserve currencies. It is important to understand how the performance of these alternative assets has changed compared to traditional asset classes. Because of its role as a store of value and payment system, Bitcoin can become a potential diversified investment vehicle.