#965 Ric Edelman On Why The #1 Financial Advisor Is All-In On Crypto

Ric Edelman is the author of the new book "The Truth About Crypto" and is the #1 Independent Financial Advisor in the country. In this conversation, we talk about the macro environment, Bitcoin, why Ric pivoted to focus on Crypto, the role of Cryptocurrencies in an individual's portfolio, and why the invention of the Blockchain is one of the greatest human inventions of all time. ======================= LMAX Digital - the market-leading solution for institutional crypto trading & custodial services - offers clients a regulated, transparent and secure trading environment, together with the deepest pool of crypto liquidity. LMAX Digital is also a primary price discovery venue, streaming real-time market data to the industry’s leading analytics platforms. LMAX Digital - secure, liquid, trusted. Learn more at LMAXdigital.com/pomp ======================= The Pod Pro Cover by Eight Sleep is the most advanced solution on the market for thermoregulation. It pairs dynamic cooling and heating with biometric tracking. Go to https://www.eightsleep.com/Pomp to check out the Pod Pro Cover and save $150 at checkout. Eight Sleep currently ships within the USA, Canada, and the UK. ======================= The world's 2nd largest crypto exchange, OKEx, has dropped the "E" to become OKX, reflecting its evolution from a traditional crypto exchange to a comprehensive, cross-platform crypto services provider. With OKX's decentralized platform and Web3 wallet, MetaX, you have full custody over your crypto. Explore DeFi, NFTs and play-to-earning gaming with the world's most powerful crypto exchange. Visit OKX.com to learn more. =======================

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:02Anthony Pompliano?

  What's up everyone, this is Anthony Pompliano. Most of you know me as Pomp. You're listening to the Pomp Podcast, simply the best podcast out there. Now let's kick this thing off. Rick Edelman is the author of the new book, The Truth About Crypto. He also happens to be the number one independent financial advisor in the entire country. Rick and I had a great conversation. We talked about everything from Bitcoin to the macro environment, how financial advisors are dealing with their clients, and what the role of Bitcoin and cryptocurrencies are for the average citizen's financial portfolio. I really enjoyed this conversation with Rick, and I hope that you enjoy it as well. Before we get into this episode, though, I first want to talk about our sponsors. First up is LMAX Digital, the number one institutional crypto exchange. They offer clients the deepest pool of crypto liquidity on the planet, underscored

• 0:47Anthony Pompliano?

  by 100% uptime track record through volatility spikes. They leverage LMAX Group's liquidity relationships and ultra-low latency technology. LMAX Digital is the market-leading solution for institutional crypto trading and custodial services. If you've never heard of LMAX Digital, it's probably because you're not an institution. They have no retail, only institutions. They feature a sent-and-troll limit order book streaming spot Bitcoin, Ether, Litecoin, and Bitcoin Cash, all paired with US Dollars, Euro, and Yen. LMAX Digital, they're secure, they're liquid, and they're trusted. Learn more at LMAXdigital.com/pomp. Again, LMAXdigital.com/pomp. This episode is brought to you by Eight Sleep. Eight Sleep is the single best product that I

• 1:30Anthony Pompliano?

  have purchased over the last three years. It completely changed my life. I'm not joking, pay attention. The Pod Pro cover, which goes over your mattress by Eight Sleep, is the most advanced solution on the market for thermal regulation. It pairs dynamic cooling and heating with biometric tracking. You can go to eightsleep.com/pomp to check out the Pod Pro cover, and you save $150 at checkout. They currently ship within the United States, Canada, and the UK. Now, I told you, it changed my life. It helps me sleep deeper, helps me sleep longer, I feel much more refreshed, and I have better energy. You want to know how I have relentless energy every single day? Because I sleep on an Eight Sleep. Seriously, go check it out, eightsleep.com/pomp.

• 2:10Anthony Pompliano?

  Pomp today. This episode is brought to you by OKX. OKEX has dropped the E to become OKX. Founded in 2017 with a mission to deliver a cutting-edge crypto trading experience. OKX, the world's second-largest crypto exchange by trading volume, has since expanded its scope alongside the wider industry, adding features from all corners of crypto. If EX is about exchange, X is about intersections. Cross-chain, cross-functional, cross-platform, an interoperable future that's not siloed into isolated platforms and blockchains. The name change and the new look and feel represent OKX's ongoing move towards decentralized finance.

• 2:50Anthony Pompliano?

  With OKX's decentralized platform and Web3 wallet, MetaX, you have full custody over your crypto. Connect MetaX in your browser or within the OKX app to explore DeFi, NFTs, and play to earning gaming with the world's most powerful crypto exchange. Whether you're just learning about crypto, you're a seasoned DeFi DJ, an NFT enthusiast, or a pro trader, you're all invited to a better future. Go check it out today and let me know what you think.

• 3:18Speaker 01

  Anthony Pompliano runs Pomp Investments. All views of him and the guests on his podcast are solely their opinions and do not reflect the opinions of Pomp Investments. You should not treat any opinion expressed by Pomp or his guests as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his personal opinion. This podcast is for informational purposes only.

• 3:41Anthony Pompliano?

  Rick, how are you doing? I'm doing great. Good to be with you. Absolutely. I'm so excited to talk to you. I feel like the last time that we talked, it was in good times. Now, we are talking and prices are falling. There's fear and uncertainty and chaos everywhere. Let's maybe just start with- Really? I hadn't noticed. Let's maybe just start with kind of a sentiment check. Like, you talk to financial professionals every single day. You're known as one of the forward-thinking folks who have pioneered a bunch of different asset classes, strategies, etc. What are you hearing from people? Are the financial professionals scared and potentially leaving the industry? Or do you think that they now have the conviction and knowledge where they understand prices are down? But they're here to stay for a long period of time.

• 4:22Speaker 02

  They're here to stay. Prices are down. Their attitude is we've been here before. We've seen this movie play out. Everything from 1987 to 2001 to 2008 to 2020. We've seen these kinds of market mayhem's in the past. And this too shall pass. That's the general overall sentiment. I think some of that is misplaced, quite frankly. And I think there's a little bit of too much of a cavalier laissez faire attitude in what's going on at the moment.

• 4:51Anthony Pompliano?

  Talk to me a little bit about that. Where do you think people are overconfident? Or they think that there's no risk, but you actually would highlight that there is risk.

• 4:58Speaker 02

  Well, we're undergoing a generational shift in interest rates. You know, most advisors, I think most investors, pretty much everybody alive today. Our investment experience personally is more recent than 1980. And I don't know too many folks who are investors in the 1970s. Many of us were kids. I was, and I remember gas lines. I remember gas rationing. I remember standing in line at gas stations on behalf of my parents, waiting hours to buy five gallons of the gas every other day based on your license plate. But I wasn't an investor. I was a teenager. And I don't know too many people who are investors in the 70s. And so if our investment experience is personally in the 80s, 90s, 2000s and teens. We have experienced personally only interest rates going down.

• 5:43Speaker 02

  And when interest rates go down, which is what they've done steadily since 1982, bond prices go up. Well, now we spent the last 10 years with interest rates at zero, nearabouts, historically low. And now in the last several months, interest rates beginning to go up for the very first time in the last 40, 45 years. Something that nobody alive today has ever experienced. And we know on paper that rising rates causes bond prices to go down. But nobody has ever really truly experienced this. And I think for advisors to say to their clients, oh, just keep your bonds, hang in there, it'll all work out. Well, we know that's true in the stock market. It'll all work out in the long run.

• 6:25Speaker 02

  But I'm not so sure that that's true for the bond market. I think we are experiencing a fundamental shift on global economy due to rising interest rates for the First time in forty to forty-five years.

• 6:34Anthony Pompliano?

  When you think about this scenario, obviously, there's pension funds, there's all sorts of retirement accounts. There's a lot of assets that have been allocated to fixed income bonds, etc. Is your belief that those individuals who run those organizations or those pools of money will have to fundamentally kind of drop fixed income in its current form and either go find higher yields or different versions of yield? Or even potentially just get completely out of that market because of kind of what you foresee happening with the pricing of those assets?

• 7:07Speaker 02

  I think many of them already have. You've got the controller of New York City requesting permission to go heavier into alternatives. We have pension funds, endowments all over the country that are doing the same, recognizing that the next ten and twenty years are not going to be the same as the last ten and twenty years. And we can't behave as though they will be. We have a huge retirement savings gap in our nation, four trillion dollar gap. The amount of money we're going to need in retirement versus the amount of money we have. We know that pension funds are assuming that they're going to earn seven and a half percent per year. And we know that ain't going to happen over the next decade. Stock market's not going to earn ten percent a year the way it did over the past twenty years, past hundred years. And we know that real estate values are very, very high.

• 7:51Speaker 02

  We've got the new dynamics of rising interest rates, rising inflation rates. The pandemic is lingering. We've got the uncertainties of what's happening in Ukraine because of Putin. All of these things are conspiring with massive debt loads on a global basis because of the trillions that have been injected to fight the pandemic. We can't assume that we're going to be able to earn money in the future the way we earned it in the past. And that is why crypto is so exciting.

• 8:17Anthony Pompliano?

  Yeah.

• 8:17Speaker 02

  This asset class is going to be the redeemer for so many around the world.

• 8:22Anthony Pompliano?

  I obviously am highly biased, but tend to agree with you. The last question I was about the kind of legacy world and maybe even legacy investment strategy before we get into Bitcoin, cryptocurrencies and some of the work you're doing there. Is as you look at many of these institutional asset managers making changes, right? Regardless of what they are, but I do think that there's. A trend from kind of fixed income into alternatives or other types of things that have performed better and potentially well in the future. There's a lot of critics that would say, oh, this is like top of market behavior, right? As people start to push out on the risk curve, people start to seek better and better returns and they're quote unquote getting greedy. Now, I don't necessarily agree with that, but how do you think about like, sometimes that does

• 9:04Anthony Pompliano?

  happen and other times they have to make changes. And so are there things that you either talk to advisors about or clients or maybe even other kind of institutions about when and how to evaluate what is top of market behavior versus like what is necessity to make sure that you're protecting capital over a long period of time?

• 9:20Speaker 02

  Yeah, I think your observation is correct on all three of those points that sometimes there is a knee jerk reaction to get out of what you held and it's a, you know, classic bad market timing. So you're right about that. On the other hand, there is a sea change going on now, which is demanding forward thinking to acknowledge that there is a different environment going on right now geopolitically, as well as economically all around the world. And it's hard for these huge institutions to alter the way that they're conveying their messaging. I mean, you talk to a typical financial advisor, let's, let's keep in mind, most advisors have been doing this for a really long time. They're, the average age is 62 and most advisors have been

• 10:05Speaker 02

  in this business for 20 years or more. And the way we have been taught through modern portfolio theory and the efficient frontier, you look at standard deviation, max drawdown, sharp ratios, or Tino ratios, all of these numbers, all of this academic theory that we have all grown up on over the past 40 to 50 years. Thank you, Harry Markowitz, and thank you to Eugene Fama and Ken French. We are taught stay diversified, maintain a long-term focus and rebalance. That's what we're taught. And that has worked wonderfully for the past half century. But this is a different environment that we are in and that we are going to be in. We have a brand new asset class that

• 10:48Speaker 02

  never existed before, crypto. We have a complete sea change in interest rates, the implications of that on federal and global debt levels, with the implication on real estate and business formation, which is

• 11:02Speaker 02

  Credit base. It is forcing people to say, everything that I've told you for the past 50 years, no longer applies. Well, how do you sell that to the client who gave you their life savings? How do you sell that to the pension fund, endowment fund, or sovereign fund, which is relying on you and your years of experience and track record when you're saying, oh, this time it's different? Because we all know, as soon as somebody says, this time it's different, we know not to believe them. And that's the dilemma so many are facing. And it's difficult for people to shift their strategy, to turn around that aircraft carrier, when we wish we were in a rowboat where we could do it really quickly and easily.

• 11:42Anthony Pompliano?

  You're widely considered the number one, I think, independent financial advisor in the country. And so when you started to become curious about Bitcoin, cryptocurrencies, and these technologies, and then eventually, what I would categorize as kind of a rational proponent for these technologies, it caught my eye. I would say, oh, wow, like, that's a very, very big deal that Rick Edelman is now interested in this stuff. Where are you in kind of that enthusiasm for these technologies? And how do you think about Bitcoin or other assets within just the average American's financial portfolio today?

• 12:20Speaker 02

  Well, I've been, as you know, Pom, I've been focusing on what's next, what's coming, where are we headed? Throughout my entire career, I'm regarded as a futurist in the financial industry. And my last book, The Truth About Your Future, was all focused on exponential technologies, AI, robotics, 3D printing, big data, nanotech, biotech, bioinformatics. Where are all these technologies taking us? What are the investment opportunities? And how are they going to impact our lives? Careers, college planning, housing, marriage, estate planning, and so on. And that's why I wrote that book back in 2017. And most of its predictions have now come true. It included a prediction about the pandemic, that we would have one by 2020.

• 13:03Speaker 02

  And so we have to recognize that this is all changing rapidly because of technological innovation. And now, a big key element of that is blockchain and digital assets. Which has caused me to write my new book, The Truth About Crypto. You know, you begin with The Truth About Your Future, which mentioned crypto. And now an entire book, The Truth About Crypto, which just came out last week and debuted at number one at Amazon. I'm really excited about how well it's being received. We have to recognize that this is the first new asset class, as you know, in 170 years. The last time we had a new asset class was the discovery of oil in the 1850s. And look how incredibly impactful oil has been on the globe.

• 13:46Speaker 02

  Prior to oil, we were using whale oil to light our candles. Look at us today. And that's where we are now with the innovation of blockchain and digital assets. This is a huge deal. It's going to be the biggest source of wealth generation over the next 20 years than any other asset class. Probably more impactful than any other asset class in history and in a truncated period. Won't take 100 years to have an impact like oil did. It's going to have an incredible impact within a decade, already has. And this next eight years are going to be amazing. So I finally felt compelled that if I want to help investors, I want to help consumers around the country improve their ability to achieve financial security

• 14:28Speaker 02

  and pay their way for kids into college, buying a home, caring for aging parents. The most impactful way that I can help you do this is by helping you understand crypto. To the point where I have walked away from Edelman Financial, the company that my wife and I built over the last 40 years, to, as you noted, the largest investment advisory firm in the country with $300 billion in assets under management. I walked away from it because I can be more impactful to you. I can help you better by teaching you about crypto than any other single thing I might be able to do.

• 15:02Anthony Pompliano?

  In the book, you talk about basically four major breakthrough inventions. Fire, the wheel, the internet, and then eventually the blockchain technology that solved the double spend problem. I want to start, obviously, just with the gravity of that framework, right? Fire, the wheel, things that people just take for granted today. You put this technology there. Walk me through.

• 15:25Speaker 02

  A little bit as to why you believe it's that important. Yeah, I'm trying to hit people upside the head to get your attention and to make you realize just pay attention. This is a big deal. I mean, to suggest that blockchain is on the same level as the wheel. I mean, you know, it's a Barney Fife moment. You gotta be kidding me. And that's really the point that I'm trying to make is that just as the wheel changed everything. Our discovery of fire changed everything. The invention of the airplane, the invention of the phonograph and the,

• 16:00Speaker 02

  you name it, just the incredible inventions, the assembly line that Henry Ford invented. These things changed everything and that's what blockchain technology is doing. We all know how incredibly impactful the internet was. The ability for us to transmit our words to somebody else instantly and for free, you know, via an email, our ability to connect with friends online via Facebook. That was the original internet, the connection of people. Well, then we had the internet of things, you know, my phone talks to my car. Now we have the internet of money, the ability to move money around the world as easily as we send a text, doing it as cheaply, as safely, as securely and as transparently.

• 16:43Speaker 02

  This is huge for global commerce because businesses are always trying to figure out, how can I move faster, safer and cheaper? And that's what blockchain technology is all about. And if you think this isn't going to be a huge deal, you just ain't, you're not paying attention. Give you one illustration. I mean, we all heard the statistics, which you know that 90% of the world's banks are developing blockchain technology. My favorite data point is this, last year, Bank of America, all by itself, filed 161 patent applications.

• 17:16Speaker 02

  How can you, I didn't even know there were that many things to invent in this field, first of all. That's just one bank, one year. VCs are putting about a third of all their money into blockchain technology. You can't spend $100 billion over a five-year period and end up with nothing to show for it. The incredible impact is going to be huge, and the sooner people learn about this and understand why this is a big deal for business, and how it's going to be impactful, and the investment opportunities that are available, the sooner people figure that out, the more wealth they're going to be able to create. But Bitcoin's already $30,000. Look at how much you've already missed. How much more of it are you gonna miss before you finally say, "I need to add it to my portfolio?"

• 17:58Anthony Pompliano?

  So you mentioned Bitcoin, and maybe let's start there in terms of, there's a lot of folks in the institutional asset management world, financial advisors, who, they were very bearish. They were critics. They said, "There's no way this is gonna work." I think now we've gone from kind of contrarian to consensus being, "Okay, fine, let's put 1% of assets in." There may be some non-correlation over really long periods of time, or there may be some asymmetry, but let's not get too crazy. Let's not try to get too confident here. We'll put half a percent, 1%, maybe 2%. How do you think about the sizing of these assets, especially when you look at, you know, five-year Sharpe ratios, and kind of, you know, you get more sophisticated analysis? Is this something where you think

• 18:39Anthony Pompliano?

  people will stay kind of in that low, single-digit percentage allocations? Or do you already see financial advisors talking about, "No, actually, we want, you know, target allocations of 10%, 20% to the space"? Or what are you seeing and hearing? What do you think people should be doing?

• 18:53Speaker 02

  I think advisors are still in the low, single-digit area. That's where I am in my advice to consumers. In my book, The Truth About Crypto, I talk about a 1% asset allocation. And I say that because it's a safe, easy, non-threatening way to get started. Meaning, if you put 1% of your portfolio into this, and it blows Goes up on you and it goes bad. Eh, so what? You'll call it annoying, not devastating. In other words, if you put 1% into Bitcoin and Bitcoin blows up and becomes worthless, you're not going to destroy your financial security. You're not going to find yourself in poverty in retirement.

• 19:34Speaker 02

  In other words, it's okay to invest 1% because if you do 1% and things go as well as many hope, that 1% will materially improve your financial future. You might even be able to retire sooner or with more money. So the upside reward dwarfs the downside risk with a 1% allocation. Many people are arguing that a more effective approach is 2% or 3% or 4%. One study from Yale says 6% of assets is all you need, but everybody's talking low single digit. My assumption, what my belief, my prediction for you, Pop, is that over the next 10 years, as people invest 1% or 2%,

• 20:16Speaker 02

  they're going to discover that it grows faster, it doubles faster than any other asset class. It'll double faster than stocks or bonds or real estate or gold or oil. And as a result, the 1% allocation will become 2%, and then 4, and then 8, and then 16, and they're not going to want to sell because they're going to realize that the price appreciation potential still persists and they're not going to want to sell. So while they might start out with a low, single-digit allocation, inertia will take over and they will discover, they'll turn around one day and they'll say, "Oh, I do have a 10% or 20% allocation, simply because the 1% or 2% I bought has grown so much in value relative to the rest of my assets."

• 20:57Anthony Pompliano?

  And when you think about that, is there a rebalancing that you usually advocate for? Or is it something where it's just a buy, hold it forever? And if it grows to be, you know, 50, 60, 80%, and kind of all of the promises of the technology end up being realized, just leave it and don't incur taxation or whatever. Like, how do you think about if you are so fortunate that you make the right decisions and it grows in size? What, how do you think most people should, should deal with that?

• 21:23Speaker 02

  If you are going to manage the money the way you're supposed to. To manage money under modern portfolio theory and effective money management, you should rebalance. It helps you take money off the table. It captures your profits. It secures them. And when the prices occasionally dip, as they're doing right now, it creates a buying opportunity. So yes, you should rebalance. Having said that, I will tell you that I have never rebalanced my crypto allocations. Which is one of the reasons I am very overweight in crypto right now, because my wife and I have been buying since twenty. Uh, we got started in Bitcoin in twenty twelve, started buying in twenty fourteen. We've never. Uh, sold any of our positions because although I of course believe in rebalancing and I do it everywhere else.

• 22:06Speaker 02

  In my portfolio, I continue to believe that the upside is incredibly strong and I'm not willing to pare back because I believe it's the best asset class. In my portfolio and I don't see the point of rebalancing. I recognize I'm taking bigger risks as I do it. We are willing to take those risks. We can afford to take the risk. Uh, we don't have children, so there's nobody's inheritance that we're destroying. So, you know, we're just having a good time with it. But for most folks, I would say, yeah, rebalance, be prudent, do the right thing. And I'm going to throw another thing out there that you quickly mentioned in passing, and that was taxes. Taxes are a very big, significant issue for crypto owners like all investors. Because you gotta pay taxes on the profits. This is why I'm so excited about Fidelity's announcement.

• 22:51Speaker 02

  That they're going to allow the 401k plans that Fidelity manages, the world's biggest. 401k provider here in the US, 2.7 trillion in assets for 23,000 employers. Over 10 million workers. They're now going to let all of those workers buy Bitcoin inside the 401k. This is great news because the 401k or IRA is the best place to be buying Bitcoin. Because you're doing it in a tax-deferred environment where you can trade without having to incur. Taxes as you do.

• 23:23Anthony Pompliano?

  And then Rick, when you start to think about the other areas outside of Bitcoin, how do you think about allocating there? And what immediately jumps to mind, obviously, given the market drawdown in super volatile assets is meme stocks, the long tail of crypto. This is all gambling. I've seen people tweeting about it on Twitter and elsewhere. How do you kind of sift through where is their signal? Where is their noise? And for financial advisors, where this is just one of many, many asset classes or markets that they're paying attention to, how do you kind of help them understand what's real and what's not in some way?

• 23:57Speaker 02

  You know, a lot of people think that crypto is new and different. They don't understand it. And that's not true. You understand it much better than you think because it has a lot in common with the stock market. There are a lot of day traders in the stock market. There are a lot of market timers who are trying to get rich quick in stocks, technical analysts, quantitative analysis, people that are trading stocks. They have no idea what the companies are that they're trading and they don't care. They're just looking at charts and data and graphs and they're buying and selling on a daily basis, often hourly or more. They're trading options and futures, all in an effort to get rich quick. They're doing it on margin, borrowing money to amplify the amount of money that they're investing. The stock market's filled with people like that. And that has nothing to do with long-term investors, little

• 24:41Speaker 02

  old ladies who own mobile Exxon, Exxon Mobil, or Disney, or AT&T, or IBM. In other words, the stock market is filled with long-term investors as well as short-term traders. And the crypto markets are the very same thing. There are some people who are trying to get rich quick, capitalize on all this mania, the hype, the opportunities to do that with NFTs, with tokens, with coins, with airdrops, with ICOs. Fine, knock yourself out, have a good day. Or you could just instead say,

• 25:12Speaker 02

  Bitcoin is about half of the market. Ethereum is about a quarter of the market. Between the two of them, they're the Coke and Pepsi of crypto. Just buy Bitcoin and Ethereum, call it a day. You want to knock yourself out and go beyond that? You have a wide variety of investment opportunities offered by Grayscale, Osprey and Bitwise, such as the Bitwise 10 Crypto Index Fund, which uses the top 10 coins. You've got a lot of funds issued by Anthony Scaramucci, for example, at Skybridge. You have Galaxy and you have a whole bunch of other funds, multi-coins, that are giving you the ability to invest in a wide variety of coins and tokens. There are funds of funds that go even further. There are SMAs and TAMPs that advisors can use to custom build portfolios.

• 25:57Speaker 02

  There are proxy stocks like MicroStrategy, actually publicly traded ones like Riot Blockchain and Coinbase. In other words, however you choose to play in crypto, just like however you choose to play in stocks, there's a way for you to do it. For most ordinary mere mortals, Bitcoin and Ethereum, call it a day. As you would get engaged, as you learn more, as you read my book, The Truth About Crypto, you'll understand the different ways and you might get more interested in pursuing them and increasing your asset allocation and your diversity. That's what my wife and I have done with our crypto portfolio. Or just do Bitcoin and Ethereum, call it a day. You'll be directionally correct. You might not be the richest person in the space,

• 26:40Speaker 02

  but you'll do a whole lot better, a whole lot better than the person who does zero.

• 26:45Anthony Pompliano?

  And then when you think about kind of the average client, they got lots of questions. They're constantly asking, what about this? What about this? I heard this thing I saw on the news. My friend told me that my taxi driver got rich, the whole gamut of stuff. What's your either advice for financial advisors or actually for end clients as to how to best work together? I think this is something that you guys have done a great job of, of like, how does the financial advisor best communicate with the end client? And then if somebody is a client and has a financial advisor, what's the best way for them to work with the financial advisor?

• 27:15Speaker 02

  Advisor as they look at a space like this. The problem here is that this is a totally brand new asset class. So even if you've been an advisor for forty or fifty years, you don't know anything about crypto any more than your client does. All of your training, all of your experience, all of your professional designations and your college degrees are of no value in the crypto space. This is why Jamie Dimon says silly things like Bitcoin is worthless or has no intrinsic value. He's applying the traditional economic environment to something that is completely new and totally different. Square pegs and round holes, and that's why his head explodes. So you've got to recognize, even if you're an advisor managing huge amounts of money for very large numbers of people and you've been doing it for a very long time,

• 27:57Speaker 02

  this is totally different and you must begin from scratch, just like your client. You've got to get yourself educated because this asset class is different from all others. It's a brand new invention that's only twelve years old. So you need to get educated and that's why I created at DACFP, you mentioned earlier on, the Digital Assets Council of Financial Professionals, DACFP.com. We created the Certificate in Blockchain and Digital Assets for Financial Advisors, a deep dive, eleven module, online self-study course, thirteen CE credits to teach you about this tech. First half of the course, what is Bitcoin? What is blockchain? How does it work? Second half,

• 28:39Speaker 02

  all about practice management, the investment thesis, how do you build a portfolio? What are the opportunities? What about regulation, compliance, taxation? And as you said, how do I explain it to my client who doesn't know anything except what their teenagers are telling them and Matt Damon in a TV commercial? So it's really important that advisors get up to speed, build their knowledge base so that they can actually provide the services to their clients that their clients are demanding. And to help advisors, we not only offer the certificate program, we also created the Advisor Directory, an online source for consumers who are looking for an advisor who's knowledgeable. The online Advisor Directory at DACFP is free for everybody to use

• 29:22Speaker 02

  and will connect you with the hundreds of advisors who hold the certificate and who know. What they're talking about in this space. As I always say in every aspect of personal finance, you shouldn't be doing this all by yourself. You should be using the services of a professional, a financial advisor, an attorney, an accountant, a mortgage broker, a real estate agent, people who are skilled, trained, experienced in helping you achieve your goals, serving your best interest. And in this new world of crypto, you need to make sure your advisor knows what they're talking about. The overwhelming majority of advisors don't. They know no more than you, and you need to make sure you're dealing with an advisor who's knowledgeable. Ask them if they have read The Truth About Crypto.

• 30:07Speaker 02

  Ask them if they have gone to DACFP, attended our webinars. Ask them if they've ever heard of POM. Because if they've never heard of you, how can they claim that they know anything that's going on in this business?

• 30:19Anthony Pompliano?

  Rick, you're a consummate professional and you continue to be a pioneer in all things financial professionals. Obviously, the business that you built previously speaks for itself in terms of its size and probably more importantly, the positive impact it had on so many different people's lives. It's awesome to see you now as a proponent of Bitcoin and cryptocurrencies. And the book, The Truth About Crypto, is fantastic. So I highly suggest people go check that out. I've just dropped the link into the chat here. If you had to leave everyone with one last message, what's kind of the one or two sentences as to why they should spend time on this stuff?

• 30:54Speaker 02

  This technology is transformative and it's changing the way business is conducted on a global basis. Governments are all racing to support the innovation. You don't want to say, "I could have invested in crypto in 2022 and failed to do so." You want to be able to say that you grabbed a hold of it, you learned about it, and you figured out how to incorporate it into your portfolio. Now's the opportunity to do that, and I hope you'll take advantage of it.

• 31:22Anthony Pompliano?

  Comes along once in a generation. I love it, Rick. Thank you so much for taking the time to uh to come on here. Anyone who has not gotten the book yet highly suggests you go get the truth about crypto. A practical, easy to understand guide to Bitcoin, blockchain, NFTs and other digital assets from the number one independent financial advisor in the world, in my opinion, number one in our hearts for sure. Rick, thanks so much, and we definitely will have have to have you come back as as you kind of keep pushing forward into into this industry. We're we're glad to have you. Thank you, Pom. And I and I need to get you on my national radio show. Can we book that real soon? I am I'm down. The reason I like radio is because no one has a look at my ugly face. So it's like the perfect, perfect setup for somebody like me. We'll get that booked. I look forward to it. Always a pleasure. Thanks so much. Talk soon, Rick.

• 32:08Anthony Pompliano?

  Thanks so much for listening to today's episode. I really hope you guys enjoyed this one. Make sure you subscribe on Apple, Spotify, or your favorite podcast player. And if you're looking to try to transition to get a new job in the Bitcoin or crypto industry, we've got you covered. Head over to pomscryptocourse.com. We've developed a curriculum with the top teams across the industry. It's a three-week intensive training program with over 50 events packed into that three-week time period. Go to pomscryptocourse.com to learn more and I'll meet you guys for the next episode.