Bitcoin Policy Institute: bitcoin is an “effective portfolio diversification tool”

On October 27, the Bitcoin Policy Institute recently published a paper titled “The Case for Bitcoin as a Reserve Asset,” which argues that central banks should adopt Bitcoin as a hedge against rising inflation, geopolitical risk, capital control risk, sovereign defaults, bank failures, and U.S. government-imposed international sanctions as a reserve asset. The paper's author, economist Matthew Ferranti, argues that Bitcoin is an “effective portfolio diversifier” due to the weak correlation between decentralized assets and other financial instruments.