Recently, legendary financial advisor and best-selling author Ric Edelman shared him latest thoughts on Bitcoin during an interview with John Darsie, Managing Director of global thought leadership forum and networking platform SALT.
In 1986, Ric Edelman and his wife Jean Edelman founded the financial planning and investment management firm Edel Financial Services. In 2018, Edelman Financial Service merged with another financial advisory firm Financial Engines to form Edelman Financial Engines. In 2018, 2019, and 2020, Barron’s named Edelman Financial Engines the best independent advisory firm in the U.S.
Edelman is also the founder of RIA Digital Assets Council (RIADAC), the aim of which is to give “financial advisors the knowledge and skills they need to provide their clients accurate, relevant, timely and valuable advice about blockchain and digital assets.”
In an interview published last Tuesday (December 15) on SALT’s YouTube Channel, as part of SALT Talks (“an ongoing series of digital interviews with the world’s foremost investors, creators and thinkers”), Edelman talked about why financial advisors are becoming more interested in Bitcoin and why we are likely to more and more large institutions (such as pension funds and insurance companies) invest in Bitcoin.
According to a report by The Daily HODL, with regard to the former group, he said:
“The upside potential remains very very big for Bitcoin and it is the outsized potential of returns. The stock market makes 10% in a year. Bitcoin routinely moves up or down 10% in a day. And so it is the potential for outsized returns. It is the number one performing asset class of the last one, three, five, and ten-year periods since inception and many people believe it’s still in its infancy. So there’s a tremendous opportunity for that…
“The number one reason that advisors say they are interested in this is the fact that Bitcoin is uncorrelated. Its price movements have nothing to do with anything else, not with the stock market the bond market, interest rates, inflation rates, economic policy, Fed action, nothing. And if you truly believe in diversification, you want uncorrelated and even better non-correlated assets in your portfolio.”
And with regard to the latter group, Edelman had this to say:
“The conversation is shifting from ‘You’re conspicuous if you own it,’ to ‘You’re conspicuous if you don’t’ and I think that trend is going to continue even further. Now that you can buy Bitcoin at PayPal and you have MicroStrategy for example investing over half a billion…
“We are clearly in an environment where Bitcoin is now mainstream, and this legitimizes the asset, and there’s going to be a continued snowball effect of this where people will begin to realize it’s routine, just as the gold ETF made gold a routine asset for portfolio diversification. The first two weeks that ETF raised a billion dollars. So yes, I do believe we will continue to see broad diversification and greater mainstreaming by institutions, endowments, pension funds insurance companies and so on.”
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.