Questions about Bitcoin’s role as an effective ‘hedge’ are sparking debate in the financial world. Rebecca Patterson, Senior Fellow at the Council on Foreign Relations, suggests investors may be misunderstanding its true function. She argues that Bitcoin’s unpredictable nature and sensitivity to market conditions make it more of a speculative investment than a reliable store of value. Until Bitcoin demonstrates consistent long-term behavior across various economic cycles, she believes its core identity remains as high-risk exposure with the potential for volatile swings. 🤔 A recent example highlighting this risk is MicroStrategy’s upcoming MSCI index review. A change in the company’s portfolio could trigger significant investment shifts and impact Bitcoin, potentially sparking wider market volatility. Patterson warns that while these changes may be a significant challenge, they also present an opportunity to better understand Bitcoin’s true position within the financial system.