One of the most well-known financial experts in the US, Ric Edelman, announced that his opinion on Bitcoin and Cryptocurrencies has changed significantly! "Now, to my clients..."

One of the most recognized financial advisors in the U.S., Ric Edelman, stated that cryptocurrencies have now become a mainstream investment vehicle and have started to play an important role in long term investment strategies.

Edelman stated that financial advisors should recommend their clients allocate 10% to 40% of their portfolios to crypto assets.

Edelman, known for his cautious approach to cryptocurrencies in the 2010s, considered a mere 1% allocation to crypto reasonable for investors in his 2021 book The Truth About Crypto. However, in an interview this week on CNBC's Crypto World program, he announced that he has dramatically revised that figure: "Today I say 40%, which is surprising. No one has ever said anything like this before."

Edelman attributes this radical change to the transformation that the crypto sector has undergone in the last four years. "Four years ago, it was unclear whether governments would ban Bitcoin, whether the technology would work, and whether individuals and institutions would adopt these assets. Today, all of these questions have been answered. Crypto is now a mainstream asset class," he said.

As one of the most concrete indicators of this transformation, Edelman stated that the Bitcoin ETFs receiving billions of dollars in inflows this year is a clear sign that cryptocurrencies have entered the radar of financial advisors and long term investors.

Edelman also argued that the traditional model of investing with 60% stocks and 40% bonds has lost its validity in today's world. He noted that the life expectancy in the US was 47 years in the 1900s, but has now risen to 85 years, and thanks to medical advancements, this period could reach 100 years in the next 30 years.

"If you are advising a 30-year-old on a long term investment plan, you would tell them to invest 100% of their money in stocks. Because they have a 50-year horizon ahead of them. Today's 60-year-olds are almost like yesterday's 30-year-olds," he stated. Therefore, he argued that the low returns from bonds are no longer sufficient and that cryptocurrencies can fill this gap.

Edelman also stated that Bitcoin's price movements are not synchronized with other assets such as stocks, bonds, gold, or oil, making it very valuable for portfolio diversification: "The crypto asset class offers a higher return potential than almost all other assets."

Edelman stated that some analysts predict Bitcoin could rise to a range of $150,000 to $250,000 by the end of this year, and could reach $500,000 within ten years, adding, "These predictions are still considered cautious by some."

*It is not investment advice.

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