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Former Financial Advisor Eric Edelman believes that cryptocurrencies are here to stay despite opposition at the highest levels of the financial services industry.
” The most common [criticism] is that there is no way to value Bitcoin, that Bitcoin has no intrinsic value. This is an extraordinarily common mistake, often perpetrated by highly respected people in the financial field, such as [JPMorgan chief executive officer] Jamie Dimon and warren buffet. Jamie Dimon is infamous for saying Bitcoin has no intrinsic value,” Edelman told CNBC.
To understand crypto, you have to stop comparing it to stocks of IBM, for example, according to Edelman, CNBC writes. On the contrary, Bitcoin should be treated as a network, such as AT&T, Facebook Where netflixand evaluated based on user base and growth, he said.
“You begin to realize that the Bitcoin network is growing so rapidly that there is an exponential effect of the increased value of the network itself, which is growing exponentially faster than the number of user adoptions on the network. “, Edelman told CNBC.
Edelman gave up all his securities licenses and last year resigned as chairman of a financial planning firm Edelman Financial Engines, according to the news network. He remains the largest individual shareholder in the company, which was worth $270 billion when he stepped down from his role, CNBC writes.
He also started a new business, the Finance Professionals Digital Asset Councilwith the aim of educating the financial services industry on what it says is “the first major new asset class in 150 years,” according to the news network.
Edelman’s belief in the new direction of his career stems from his belief that crypto will become ubiquitous over the next decade.
Crypto “will be a routine part of commerce globally,” he said, according to CNBC.
“McKinsey says that 70% of global GDP by 2030 will be digital. Every central bank in the world will offer digital currency, and the functionality of our personal finances through digital assets will be routine,” he said, according to the news network.
“We find it hard to remember that the iPhone only 14 years old. And yet, today, we couldn’t imagine leaving home without her. Most of us are within a meter of our phones 24/7. Blockchain technology will also be ubiquitous and routine in our lives,” he added, according to CNBC.
However, Edelman’s view on the future of cryptocurrency may be more optimistic than some other insiders expect.
“I’m CIO for one of the largest crypto asset managers in the world. I live in the San Francisco Bay Area. I’ve never bought coffee with bitcoin, and I don’t expect to do it one day, matt houganinvestment director at Bitwise asset managementsaid earlier this month to Pershingof the Insite 22 conference in Texas.
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