Edelman Financial Engines founder Rick Edelman is convinced that asset managers need to invest 1-2% of their client funds in bitcoin. It is reported by ThinkAdvisor.
However, Edelman is sure that managers must understand blockchain technology. In addition, the investment horizon should be at least several years in order to "mitigate the risks associated with volatility." Also, financial managers must be prepared for irreversible losses.
“Bitcoin is worthy of attention as a component of the portfolio,” the expert emphasized.
Edelman added that he expects an increase in mass adoption of bitcoin at the global level. He noted that some politicians accept donations to the BTC for election campaigns, as well as an increase in the number of charitable foundations accepting bitcoin payments.
Touching upon the topic of blockchain, Edelman expressed confidence that the technology is able to eliminate intermediaries in the financial market in the face of insurance companies and brokers. Also, DLT can significantly increase the speed of operations, reducing costs. In general, the expert is convinced that the blockchain will form the basis of the “authentication economy”, putting an end to the “trust industry” and thus eliminating the need for ticket sellers, realtors and other intermediaries in various fields.
Earlier, Exante managing partner Alexei Kiriyenko advised to allocate at least 3% of the total assets of the investment portfolio for bitcoin.