Bitcoin first ‘genuinely new asset class’ in 150 years, says Ric Edelman

The broader world of finance is obsessed with Bitcoin and other cryptocurrencies, but not much attention is being paid to the deeply innovative technology powering them, according to an industry veteran who’s been tracking new investment products for more than 30 years.

When investors consider the list of cryptocurrencies and their associated markets, they are often introduced to BTC, Ethereum, Ripple, and others. But given its status as the first, and first-to-market, cryptocurrency, Bitcoin has drawn far more attention and investment dollars than any of its peers.

Bitcoin first ‘genuinely new asset class’ in 150 years, says Ric Edelman

Rick Edelman, founder of Edelman Financial Engines, a financial advisory firm, described bitcoin (BTC) and crypto assets as an entirely new and distinct asset class that has nothing in common with traditional assets such as stocks, bonds, real estate, oil or commodities.

Speaking to Yahoo Finance on Wednesday, the financial advisor called bitcoin and cryptocurrencies the first truly new asset class in about 150 years. According to Edelman, no asset class has been as innovative as cryptocurrencies since the gold market.

As part of the discussion, Edelman said he helps educate financial advisors about the need to be more open to cryptocurrencies as an effective portfolio diversifier.

In fact, as Cointelegraph previously reported, a recent survey conducted by business research firm Opinium found that over 90% of the 200 independent financial advisors surveyed in the UK were against investing in crypto for their clients.

Without specifically addressing Opinium’s research findings, Edelman called the reluctance of independent financial advisers (IFAs) to participate biased:

Most financial professionals have been in the business for a long time […] But the more experience you have, the more talent you have, the harder it is to understand bitcoin.

Edelman says that since portfolio diversification and rebalancing are popular strategies for IFAs, BTC should be an obvious choice.

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Related: Cryptocurrencies and meme stocks are shunned by 90% of UK financial advisers.

Edelman also stated that financial advisors need only look at the technological underpinnings of cryptocurrencies to realize that they are not in the same category as tulips or Beanie Babies.

According to Edelman, cryptocurrencies and blockchain technology in general are the most influential business innovation since the development of the Internet itself.

In 2019, a financial advisor noted that the creation of a tradable bitcoin fund in the United States was inevitable.

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