Dogecoin Is a ‘Scam’ That Will End ‘Very Badly’ Says Legendary Financial Advisor

Legendary financial advisor and best-selling author Ric Edelman has revealed he believes meme-inspired cryptocurrency Dogecoin ($DOGE) is a “scam” that will end “very badly,” even though he is bullish on the cryptocurrency space in general.

During an interview with Yahoo Finance, Edelman revealed he believes cryptocurrencies are becoming mainstream “very, very quickly” and although theyre “not quite there yet” they are much more popular than they were a year ago and even institutional investors are getting involved.

He added we are going to “see more regulation and legislation, all of that very healthy” as even mainstream Wall Street organizations get involved and the space isnt going away.

Per his words, in the next few years he sees cryptocurrencies as a “routine part of most peoples portfolios,” but right now they are “still very speculative.”

As they are risky assets, Edelman advises investors to allocate up to 1% of their portfolios to cryptocurrencies for now as they should spend time to learn and understand crypto and “forget about the get rich quick nonsense.”

When asked about which cryptocurrencies he would advise investors to pick as there is no crypto basket exchange-traded fund (ETF) available, he pointed out BTC and ETH, and added:

I would completely ignore Dogecoin. That is nothing more than a joke. It‘s a scam and it’s going to be something that ends very badly.

Edelman added that while there are no ETFs out there, investors can invest in funds that allow them to delegate the job to a fund manager. These funds, he said, are offered by Bitwise, Grayscale, and Osprey and trade over-the-counter, showing there is no need to wait for the U.S. Securities and Exchange Commission (SEC) to approve an ETF.

Edelman and his wife Jean Edelman founded the financial planning and investment management firm Edel Financial Services. In 2018, Edelman Financial Service merged with another financial advisory firm Financial Engines to form Edelman Financial Engines. In 2018, 2019, and 2020, Barrons named Edelman Financial Engines the best independent advisory firm in the U.S.

Edelman is also the founder of RIA Digital Assets Council (RIADAC), the aim of which is to give “financial advisors the knowledge and skills they need to provide their clients accurate, relevant, timely and valuable advice about blockchain and digital assets.”