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Ric Edelman, a financial consultant, believes his colleagues must overcome their bias and evaluate Bitcoin and crypto assets with “open eyes” and “genuine curiosity.”
Ric Edelman, founder of financial advice firm Edelman Financial Engines, defined Bitcoin (BTC) and crypto assets as a “completely new and different asset class” having nothing in common with mainstream mainstays such as equities, bonds, real estate, oil, or commodities, to name a few.
Speaking to Yahoo Finance on Wednesday, the financial adviser called Bitcoin and crypto “the first genuinely new asset class in about 150 years.” According to Edelman, not since the gold market has there been an innovative asset class like cryptocurrencies.
During the debate, Edelman disclosed that he was assisting in the education of financial advisers on the importance of being more open-minded about crypto as a potential portfolio diversifier.
Indeed, as previously reported by Cointelegraph, a recent survey conducted by business research firm Opinium found that more than 90% of 200 questioned independent financial advisers in the United Kingdom were opposed to crypto investments for their customers.
While not directly responding to the Opinium poll, Edelman described the reluctance among independent financial advisors (IFAs) as biassed, stating:
“Most financial professionals have been in business a long time […] But the more experience, the more talent you have, the more difficult it is to get your head around Bitcoin.”
Given that portfolio diversification and rebalancing are common IFA techniques, BTC should be an easy pick, according to Edelman.
Edelman went on to say that financial advisers simply need to look at the technological basis of cryptocurrencies to realise that they are not on the same level as tulips or beanie babies.
Crypto and blockchain technology, in general, are the “most impactful commercial innovation since the development of the internet itself,” according to Edelman.
Back in 2019, a financial consultant stated that a Bitcoin exchange-traded fund in the United States was a foregone conclusion.