The main properties and problems of Bitcoin

As noted by experts, firstly, it is important to analyse BTC in relation to traditional financial instruments, taking into account its fundamental properties. This is about the banal absence of “quarterly earnings reports or CEO’s”.

Secondly, Bitcoin’s high volatility can be perceived as a sign of a “risky” asset. BTC is also generally able to be seen as a safe haven asset in times of crisis because of its limited supply, decentralisation and lack of attachment to states.

Finally, BlackRock analysts noted that long-term adoption of Bitcoin may be linked to global instability.

Dorian Nakamoto, who is often portrayed as Bitcoin creator Satoshi Nakamoto

Bitcoin’s volatility continues to decrease over time, indicating that its stability is increasing. In the early years of the cryptocurrency’s existence, the figure exceeded the 200 per cent level, but as the market develops, volatility comes into balance. For example, as of 2018, it does not exceed the 100 per cent line.

Falling volatility and increasing liquidity through financial instruments like spot and futures ETFs are able to attract more experienced investors. This is also made possible by the recent approval by the Securities and Exchange Commission (SEC) of physical delivery options tied to BlackRock’s spot Bitcoin ETF.

Bitcoin’s long-term growth

According to CoinDesk’s sources, BlackRock analysts have also questioned whether Bitcoin is a risky choice or a safe haven for capital in times of crisis. In the short term, the former theory looks more plausible, but over the long term, it is the main cryptocurrency that is proving to be the safe haven.

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For example, according to the Unchained platform, about 99 per cent of BTC holders make a profit if they have held the asset for at least three years. Until now, absolutely all investors have already received a return on their bitcoin investment if they have held the digital asset for at least five years.

But there are pitfalls here as well. Fans of digital assets should remember that long-term storage remains reliable only in case of using cold wallets. Still, storing coins for at least five years on an exchange is very dangerous for your capital.


Proof of this statement is the FTX platform, which was once considered one of the most popular exchanges in the U.S. and the world in general, but in November 2022 became bankrupt. As it was later revealed, the exchange's management used its customers' funds for personal needs like buying property and funding political campaigns.

Caroline Ellison, a former Alameda Research executive and ex-girlfriend of FTX chief Sam Bankman-Fried, heard the verdict in her case this week. She was sentenced to two years in prison for her role in the collapse of the trading platform. She took a plea deal with the investigation, leading many experts to not expect Allison to go to jail at all. In the end, though, many crypto enthusiasts thought the sentence was too lenient for her part in the theft of $8 billion worth of customer coins.


Former Alameda Research executive Caroline Ellison

The hypothesis about the long-term profitability of BTC is confirmed by the data of Glassnode experts. They state that more than 65 per cent of all coin circulation has not moved in more than a year. This trend suggests that many investors tend to hold Bitcoin as a long-term asset, considering it a means of saving capital. This is despite the fact that the price of BTC has experienced several corrections deeper than 20 per cent in 2024.

BlackRock also noted that Bitcoin has a very low correlation to U.S. stock market shares. In particular, the chart below shows a rolling 6-month correlation between BTC and the S&P 500 index – c 2015 the average value of the index is 0.2 points. As a reminder, the closer the value of the metric is to zero, the less noticeable is the correlation between the pair of assets.

Correlation of the stock index with Bitcoin and gold

Continuing the theme of long-term prospects, BlackRock analysts added that BTC tends to outperform other high-risk assets 60 days after significant geopolitical events.

For example, following the escalation of the conflict between the US and Iran in 2020, Bitcoin returned 20 per cent 60 days later, outperforming gold and the S&P 500. The same pattern was seen during the COVID-19 pandemic, after the US election in 2020, after the Russian invasion of Ukraine and during the US banking crisis.

Asset returns after key events

Overall, Bitcoin has the potential to be both a “risky” and “risk-free” asset depending on investors’ time horizon. While short-term fluctuations may seem risky, data shows that long-term holders of BTC almost always profit.

This is supported by the fact that a significant portion of coins remain unclaimed for a year or more, indicating the perception of BTC as a value preservation tool in the long term.


Well, the BlackRock study itself confirms the importance of Bitcoin. In addition it shows how much the crypto niche has evolved over the past year. The key event here, of course, was the launch of spot ETFs for the first cryptocurrency in the U.S., with total inflows already exceeding the $18 billion mark.