Digital Assets Council of Financial Professionals (DACFP) founder and bestselling author of "The Truth About Crypto," Ric Edelman, joins Wealth with Allie Canal to make the case for why crypto should be part of your portfolio.
Bitcoin sliding as investors shy away from risky assets and pile into safe havens as geopolitical conflict escalates in the Middle East. My next guest says that most investors should have at least some crypto in their portfolio, but does that put them at risk of a pullback? I want to bring in Rick Edelman, he's Digital Assets Council of Financial Professionals founder, and the best-selling author of The Truth About Crypto. So Rick, let's start with today's trading action. Does this expose some of the inherent risks associated with crypto investing, especially during these periods of uncertainty and volatility?
Yeah, there's no question that Bitcoin and digital assets broadly still represents, uh, a an aggressive posture in investing. Uh, but that said, we do know now, we have 15 years of performance data. Uh, the volatility of digital assets is declining as the asset class matures. And in fact, over the past year, Bitcoin has been less volatile than many tech stocks. Uh, so the pullback we've seen in the past few days is the same pullback we've seen in the stock market and the bond market, because of the knee-jerk reaction to what's happening on global economic, uh, environments and the recent attacks in Israel against Iran. So, uh, I don't really think that we need to be terribly worried about owning crypto anymore than we need to be worried about owning stocks.
And you recommend investors allocate between 10 and 40% of their portfolio to crypto. What's driving that conviction and what makes you so confident in the longer-term case there?
Well, it's a couple of things. Number one is longevity, which seems to have nothing to do with crypto. We're living longer than ever due to medical innovation. Um, nanotech, biotech, bioinformatics, uh, 3D printing.