BlackRock’s Robbie Mitchnick: Bitcoin Is a Unique Diversified Investment Tool, Not a Risk Asset

COINOTAG news, September 25, BlackRock’s head of digital assets Robbie Mitchnick provided a fresh perspective today by stating that Bitcoin has been inaccurately characterized as a “risk asset.” Notably, some crypto research publications and daily commentary assume that Bitcoin is a risky investment that should be treated similarly to stocks. However, Mitchnick argues that the fundamental underlying forces driving Bitcoin differ markedly from those influencing stocks and other so-called risky assets. Occasionally, they may even be inversely related. In BlackRock’s latest Bitcoin white paper, Bitcoin was described as a “unique diversified investment tool,” highlighting its potential for hedging against currency and geopolitical risks. According to Mitchnick, “stocks, unemployment, employment, or manufacturing have no relevance to Bitcoin. We consider Bitcoin primarily as an emerging global currency alternative. It is a scarce, global, decentralized non-sovereign asset, free from specific country risk and traditional counterparty risk. When Bitcoin is viewed in terms of risk preference, it leads to confusion among investors, as its defining characteristics suggest it should be viewed as a risk-averse asset.”