- Ric Edelman joins Bitwise organization
- Securities and Exchange Commission (SEC) recognize Bitcoin as an asset
In a CNBC interview from last week with Bob Pisani, the New York Stock Exchange and legendary Wall Street advisor, Ric Edelman embraces crypto by joining Bitwise as both an investor and advisor. This affiliation will benefit Bitwise organization especially when the US has been cautious in recognizing the fact: Cryptocurrency is already an asset class.
Edelman believes in a robust future for Bitcoin as a recognized and legal asset class. He explained that the SEC sets a high standard for offering Bitcoin ETF – though still achievable. This will create an opportunity for money allocation under management by large institutions and pension funds for blockchain products.
To the question ‘’Why wait for an ETF?’’ and ‘’if you believe this strongly, why not advise clients to invest a portion of assets into Bitcoin right now?’’ Edelman gave out a striking response where he explains that is the reason why he is frustrated since that’s what he would like to advise. But then, his firm is under the jurisdiction of the Investment Act of 1940 which makes it difficult for him to advice clients to invest in anything that is not a security.
Not Everyone Loves Crypto
Many people still fear cryptocurrencies and haven’t quite grasped the concept of blockchain technology hence end up having these – false or incomplete, impressions;
- Cryptocurrency facilitates crime
- Governments will never allow it
- It is not backed by anything
- It interferes with tax collection
- They lack compelling merits over government-issued currency
- Their deflationary nature is a threat to the economic growth
The misunderstandings about the market do offer great opportunities for those investors who have seen through first impressions. It is true of course that cryptocurrencies fluctuate widely in real market purchasing power, but that shouldn’t make the acceptance of this technology far from being ubiquitous. Crypto can achieve widespread adoption through stability, trust, and infrastructure.
Also, if a significant number of established brands, retailers or services begin publishing prices in Bitcoin and honoring those prices throughout a defined sale period, it would be a big step for crypto in attaining ubiquity.
The fraction of transactions in regular business and retail commerce (purchases, debt payment, and settlement) must significantly dwarf the fraction that is driven by hoarders, investors, and speculators.
Change is Inevitable but it is gradual
Things are starting to change, but the change is disappointingly slow for such a transformative and positive mechanism. People who have invested in Bitcoin are still optimistic since they know in the long run, the value of Bitcoin is likely to go up.
