One of the well-known Financial Advisors, Ric Edelman, the Founder of Edelman Financial Engines, spoke about Bitcoin, during his latest interview with CNBC. Here, he spoke about the reason he prompts investors to have only about 1% in cryptocurrency in their portfolio.
Notably, this is not the first time the Founder elucidated on this topic. Previously, in an interview, Edelman had stated that he advises his investors to the hold up to 1% or 2% of the investment in cryptocurrency. This percentage, according to him, should definitely not exceed more than 5%. He reportedly stated that investors will have to be ready to hold the asset for a long duration, probably decades and that they will have to be prepared to lose their complete investment if they are looking into an extremely volatile market.
More so, the Financial advisor has also spoken highly of Bitcoin, the largest cryptocurrency in the market. He had stated that the very first cryptocurrency is here to stay. He added that the coin’s presence for the past 10 years and its part in over $200 billion market makes it all the more evident that the coin will not be going anywhere.
“But it’s because of the volatility, it works to your advantage. Instead of having volatility of 2 or 3 percent a day, this thing you typically you can see it got 10 or 20 percent on a day we’ve seen fifteen hundred percent in a year and that ridiculous level of volatility is what makes the bet, if it wins a huge winner but if it loses its 1% of the portfolio it’s really a numbers game”
This was followed by Tom Lydon, the Editor-in-Chief at ETFTrends.com, stating that there is currently a lot of pent up demand. He added that over 74% of all the advisors the firm has interviewed have claimed to have talked to their clients about their interest in Bitcoin. He said:
“so they need to step up when this happens because that money is gonna go elsewhere and you want to make sure you have managed that it’s part of the pool one thing we’re quite certain is the business overall is gonna grow three point six trillion we watch me grow year after year”
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