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by mark little Filed Under: Bitcoin
Why Do Most Financial Advisors Ignore Bitcoin? It’s Time to Start Paying Attention to it…
Over the past 15 years, Bitcoin has quietly evolved into a legitimate asset class. Yet, many of us in the financial advisory profession haven’t given it the attention it deserves. If you’ve ever asked yourself, “What is money?” or reflected on the impact of U.S. money supply growth on purchasing power, you may be surprised to find that the average Bitcoin owner often has more thoughtful answers than many Financial Advisors.
Here’s the reality: Bitcoin has outperformed equities by 4-5 times annually on average over the past decade, albeit with 4-5 times the volatility. While this may make it unsuitable for risk-averse clients, it could warrant a small allocation in a well-diversified portfolio. For younger clients with longer-term objectives, overlooking Bitcoin could mean ignoring the best-performing asset of the past 10 years.
Bitcoin has hit major milestones that many aren’t aware of:
Institutional adoption by companies like Tesla, MicroStrategy, and BlackRock.
Governments, like the U.S. Federal Government, hold billions in Bitcoin. The IRS has recognized Bitcoin as property for a decade. Now Bitcoin has reached the historic price of $100,000 against the USD.
Becoming a globally recognized store of value and hedge against inflation.
This is not a call to dive in without understanding—it’s a call to educate ourselves. Bitcoin’s volatility and unique risks mean it’s not for every client, but for those with a long-term perspective, it’s worth understanding. Let’s rise to the occasion as advisors, engage with this emerging asset class, and ensure we’re providing informed, forward-thinking advice.
If you’re a Financial Advisor looking to deepen your knowledge of Bitcoin, let’s connect. The future of financial advice includes staying ahead of trends, and Bitcoin is no longer a fringe idea—it’s here to stay.
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