Crypto Markets Are Like The Internet 30 Years Ago, Ric Edelman Says

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Wall Street may have embraced the crypto markets in recent years, including the launch of bitcoin futures ETFs, and institutional investors have jumped on board, but a market expert said their ubiquity is just beginning.

Ric Edelman, founder of Edelman Financial Engines, has just launched the Digital Asset Council, which teaches financial advisors about digital stocks like bitcoin and other cryptocurrencies. He said the space reminded him of another groundbreaking technological development a few decades ago.

“It’s really like the Internet 20 or 30 years ago. We have to recognize that it only happens once in a generation. And innovative technology allows businesses to operate faster, cheaper with greater transparency, greater security, and that’s why businesses are collapsing with the development of blockchain technology, ”Edelman told CNBC’s“ ETF Edge ”Monday.

Cryptocurrencies and blockchain technology could have far-reaching applications, just like the internet, he added. Edelman highlights an interesting use case being discussed now, the potential for using digital tokens to help people find parking in urban areas.

“If the Department of Transportation recognizes the value of blockchain technology in solving a fascinating problem that has nothing to do with the movement of money, it demonstrates just how broad and important this technology is,” Edelman said.

The vast potential of bitcoin, other cryptos and blockchain technology presents a huge opportunity for investors, he said.

“We now have the benefit of experience. We know how the growth of the Internet just exploded during the 90s,” added Edelman. “This is where we are today incredibly early for investors who recognize opportunities that will not exist 10 or 15 years from now as they exist today.”

Matt Hougan, chief investment officer at Bitwise Asset Management, is equally bullish on the space. He believes that at some point in the future every company will be involved in crypto and blockchain in some way or another. Until then, he said investors should consider what is currently available to support.

“One area of ​​the market that is absolutely exploding right now is publicly traded crypto stocks. … There are a large number of crypto mining companies, there are crypto banks, there are crypto trading and asset management companies. crypto companies that are planning to go IPO in a year or two, ”he said in the same segment.

Hougan calls these companies one of the “most overlooked corners of crypto.” Coinbase, a crypto exchange and one of the most well-known stocks in the space, listed on Nasdaq last April. It is currently trading at around $ 231, below its benchmark price of $ 250 at the time.

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