Financial advisor Ric Edelman sees huge investment opportunities in Bitcoin E! News UK
Financial advisor Ric Edelman, founder of Edelman Financial Engines and the RIA Digital Assets Council, recommended having bitcoin in investment portfolios despite the volatility of the cryptocurrency. “It’s totally new and different and it’s the first truly new asset class for about 150 years,” he said, stressing that “it offers huge investment opportunities”.
Ric Edelman sees the benefits of having Bitcoin in wallets
Ric Edelman spoke about bitcoin and cryptocurrency investments in an interview with Yahoo Finance last week. He founded Edelman Financial Engines and RIA Digital Asset Council. He is also the author of several books on personal finance and the host of a weekly personal finance radio show called The Ric Edelman Show.
Edelman explained that “most financial professionals” who have been in business for a long time and who “very well, very talented and experienced” miss the opportunities of the new asset class because they do not have a good understanding of cryptocurrency. , like Bitcoin. “The more talent you have, the more professional titles you have, the more college degrees you have in this space, the harder it is to understand bitcoin.”
Noting that it uses “bitcoin as a proxy for all digital assets,” the financial adviser pointed out, “It is important to recognize that this is a completely new and different asset class that has nothing in common with anything we know: stocks, bonds, real estate, oil, gold, commodities. ”He added:
It’s totally new and different and it’s the first truly new asset class for about 150 years… It offers huge investment opportunities.
Regarding how to invest in bitcoin, Edelman said, “It’s time to start from scratch.” He stressed, “We have to recognize that bitcoin and digital assets are assets that are uncorrelated” to traditional investments, like stocks and bonds, making them “an ideal addition to a diversified portfolio… You reduce risk while by giving you the opportunity to improve. Return.”
Recently, famous hedge fund manager Paul Tudor Jones also said he likes bitcoin as a portfolio diversification. He recommends putting 5% of the wallets in cryptocurrency.
Edelman acknowledged that the price of bitcoin is volatile and unpredictable. However, he sees enough upside potential in a 1% or 2% allocation in most portfolios. “It can be a materially beneficial way to improve your overall returns over the long term,” he detailed, stressing that “it doesn’t take much to have a significant impact on your investment portfolio” .
The financial adviser also commented on non-fungible tokens (NFTs) and central bank digital currencies (CBDCs). He said blockchain technology, digital assets, NFTs, CBDCs and tokens are “the most impactful business innovations since the development of the Internet itself.” He exclaimed, “It’s huge. This is going to have a huge impact on world trade.
What do you think of Ric Edelman’s advice? Let us know in the comments section below.
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