Ric Edelman says cryptos are the first new asset class in 150 years

Digital assets like Bitcoin (BTC/USD) are not correlated, which makes them different from more conventional assets like gold, oil, real estate, bonds, and stocks, Edelman Financial Engines founder Ric Edelman told Yahoo Finance Live. The finance expert and founder of the RIA Digital Assets Council discussed the implications of the blockchain in markets in general as well as the most recent developments in the crypto market.

Resistant over the longer term

The lack of correlation between cryptos and other asset classes makes digital currencies more attractive during broader market fluctuations. Edelman believes they can be a worthwhile investment for investors looking to diversify their portfolios. After all, it is the "first genuinely new asset class" in 150 years.

The expert added that blockchain technology has vast potential for global commerce and that finance professionals, even those with years of experience, don't understand cryptocurrencies well enough and are missing out on opportunities to better serve clients.

Benefits of NFTs

Blockchain technology goes above and beyond Bitcoin and other cryptocurrencies. Edelman said that NFTs (non-fungible tokens) are among the most popular new uses of them to have appeared in the past couple of years. They can represent non-fungible, physical assets virtually. These assets are stored on a bigger blockchain as tokens and act as the "most impactful commercial innovations" dating back to the creation of the internet. He concluded: