By Andy Edstrom
Financial advisors like to talk about how bitcoin (BTC) is just a substitute for the Nasdaq because of its price volatility and high correlation to stocks.
They are more right than they know, but for the wrong reasons. In the 2020s, bitcoin will likely prove to be the driver of investment returns in investors' portfolios, just as the top Nasdaq-listed companies were in the prior decade. Financial advisors had better position their clients accordingly.
Upgrading bitcoin from Amazon to Nasdaq
In late 2020, I argued that bitcoin was the next Amazon. So much has changed since then that this view needs revision. While I still think that bitcoin's future percentage returns are on the same scale as Amazon's (AMZN) were over a decade ago, framing bitcoin's investment potential today in terms of a single company is now too limiting.