Ric Edelman: "40% of Your Portfolio Should Be Allocated to Virtual Assets"

Global investment advisor Ric Edelman has argued that 40% of a portfolio should be allocated to virtual assets (cryptocurrencies).

On the 27th (local time), Ric Edelman stated in an interview with CNBC, "The growth of the virtual asset market over the past four years has been rapid," adding, "In the future, financial advisors should recommend clients allocate 10% to 40% of their portfolios to virtual assets." He further commented, "Even I recommended only 1% allocation to virtual assets four years ago, but the situation has changed."

Edelman first explained that changing human life expectancy is the reason for his view. He said, "Previous strategies to allocate 60% to stocks and 40% to bonds were developed based on the assumption of an average life expectancy of 85 years," adding, "Now, since people's life expectancy is 100 years, and if there are better investment opportunities than bonds, those should be taken." He emphasized, "In the next decade, I believe virtual assets will generate the best returns."

Edelman also pointed out the accelerating adoption of blockchain technology. He stated, "Blockchain technology will grow to a scale of $3 trillion by 2030," and "blockchain technology can bring about financial innovation." This, according to Edelman, could lead to increased participation by institutional investors and a rapid establishment of regulations related to virtual assets.

He also evaluated Bitcoin (BTC) positively. Edelman noted, "Even if just 1% of global assets is allocated to Bitcoin, its price would skyrocket," forecasting that "Bitcoin could rise to $500,000 by 2025."