Bitcoin (CRYPTO: BTC) held near $70,000 as Digital Assets Council financial professionals adviser Rick Edelman said investors should be “ecstatic” at current prices, arguing if you loved Bitcoin at $126,000, you have to love it more at $70,000.

The 10-40% Allocation Thesis

Edelman recommends investors allocate 10-40% of portfolios to crypto despite Bitcoin trading more than 30% below its $126,000 record high from mid-October. 

He argues adoption is growing and Bitcoin’s returns are likely to dramatically outperform any other asset class over the next 5-10 years.

“We talk about 5 or 10% returns for other assets. Bitcoin is going to be 5x or 10x over the next 5 to 10 years,” Edelman said. “So the profit potential is massive.”

The second reason for serious crypto allocation stems from longevity. People are living longer thanks to medical innovation, and if you’re alive in 2030, odds are good you’ll live to age 100 or beyond according to scientists. This means the traditional 60-40 portfolio model is obsolete.

Edelman argues for replacing 60-40 with 80-20, keeping 70-80% of money in equities for much longer. 

If that’s true, crypto needs to be a much stronger allocation than 1-2%, more like 10-15-20% for most investors.

The Mainstreaming Argument

Edelman said Bitcoin is becoming regarded as a tech category asset, moving more in line with the stock market, particularly emerging markets, technology stocks, and growth assets. “That’s a healthy good sign,” he said.

Bitcoin’s predominant use is now as a store of value. The notion from Satoshi in 2009 that it would replace fiat currencies has failed. 

Moreover, Bitcoin’s use as a transactional tool has also been supplanted by stablecoins.

Less than 5% of the world owns Bitcoin. If you look at other asset classes like stocks, bonds, real estate, oil, and precious metals, the adoption rate is dramatically higher. 

Bitcoin has a long way to go, which is why proponents argue we’re in the very early innings of pricing.

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