…and Jeremy Siegel’s View On the Future of Bitcoin
Most High-end Financial Advisors I work with turn their noses up at Bitcoin. I get the sense that it’s less about opposition to Bitcoin as an asset class, and more to do with apathy. Yet Bitcoin keeps quietly achieving substantial milestones, while 99.9% of Financial Advisors I know and work with, are ignoring it. One of my favorite economists is Dr. Jeremy Siegel, Professor Emeritus of Finance at the Wharton School of the University of Pennsylvania. Let’s examine his thoughts on Bitcoin.
Fifty years ago, I was a student of Benjamin Graham, Warren Buffett’s intellectual mentor, and my deep-dive into Graham’s value-based equity approach led me to Jeremy Siegel, head of economics at the world-famed Wharton School of Business.
Eventually Siegel wrote the classic book Stocks For The Long Run, used for decades by Financial Advisors because it makes the case that Equities, represents the only asset class that consistently grows faster than the purchasing power of the U.S. Dollar is consistently declining. From a Financial Planning perspective, the data is clear that equities have a place in nearly all long-term client portfolios. I may be a slow learner, but I got that lesson from Siegel loud and clear back in the 1980s and utilized his sound arguments to ‘make the case’ with clients who were jittery about volatility..
When it comes to Bitcoin, like most Financial Advisors, I ignored it for years. I thought it was just ‘magic internet money for rich idiots.’ As I stubbornly persisted in that view, Bitcoin quietly doubled in price against the U.S. dollar. Then it doubled again — 13 times — before I started paying attention. Jeremy Siegel, my economic hero, recognized the legitimacy of Bitcoin well before I did. Now, with the price exceeding $100,000 for the first time (just 12 hours ago), I thought I’d share this brief account of Dr. Siegel’s awakening to Bitcoin.
Earlier this week Siegel reacted to an interview he watched with Jerome Powell, Chairman of the Federal Reserve. Powell stated that Bitcoin doesn’t hold it’s value, it’s not used as a medium of exchange to purchase things, and as such is no competition to the United States Dollar. All of which is demonstrably false, it’s actual legal tender in El Salvador, restaurants and retail stores accept Bitcoin, and Donald Trump famously bought cheeseburgers with Bitcoin. In Powell’s opinion, Instead Bitcoin is in a competition with gold, not the dollar. So, in reaction, Dr. Siegel responded in an interview that, in his opinion, Bitcoin is at a significant threat to the U.S. Dollar as the world’s reserve currency.
So who am I to believe? The most notable economist and market researcher in the world, or a central banker who’s almost always wrong? A few years ago, when inflation started heating up in a way that alarmed most Financial Advisors, Powell said it was just short-term and would pass quickly. Again, he’s almost always wrong. So, if it’s allowed, I’m going with Jeremy Siegel’s views on Bitcoin over Powell’s. In this piece I wanted to detail some of the milestones that have brought Siegel to his current views on Bitcoin.
For financial advisors serving affluent clients, the milestones reached in the Bitcoin market over the past few days are nothing short of fascinating. Whether you’re a Bitcoin skeptic or a blockchain believer, Bitcoin soaring past $100,000 is a headline that’s impossible to ignore. But what’s driving this meteoric rise? And what should sophisticated advisors glean from it—particularly in the context of broader economic trends?
Let’s break it down.
A Perfect Storm of Factors
Bitcoin’s climb above the $100,000 threshold was fueled by a combination of regulatory optimism, institutional adoption, and shifting market psychology, which has quietly been building over the years. Bitcoin’s accomplishments have been happening annually, out in the open year-by-year but hiding in plain sight, under the radar of most Financial Advisors. The recent election of a U.S. administration perceived as Bitcoin-friendly has set the stage for potential regulatory easing. Prominent nominations within financial oversight bodies signal a possible shift away from stringent controls and toward policies that could benefit the Bitcoin market.
Simultaneously, institutional interest is at an all-time high. With major players like Fidelity, and the world’s largest money manager, BlackRock, which is now rolling out Bitcoin-based ETFs. Digital money is no longer the fringe asset it once was. For high-net-worth clients, this means Bitcoin is increasingly being viewed as a legitimate allocation in their portfolios—not just a speculative bet.
And let’s not overlook the psychological milestone. Crossing $100,000 isn’t just a number; it’s a cultural event. The hype has brought new attention to the asset class, drawing in both retail and institutional investors eager to capitalize on the momentum. whether or not you know anything about Bitcoin, more and more affluent Ideal Clients will begin asking you about it, so you need to be prepared to say smart things which demonstrate your knowledge on the topic. If not, the more affluent and the more successful the client, the less tolerant they seem to be with professional posers so, as a skilled and experienced Financial Advisor, you don’t want even the slightest stench of that on your breath. So make the decision that you’ll do the work and skill-up on your Bitcoin knowledge.
The Siegel Perspective
Plain-speaking Jeremy Siegel, who as I’ve said is my absolute favorite economist at the Wharton School, offers some particularly useful context for understanding Bitcoin’s role in today’s financial ecosystem. His insights underscore how younger generations are driving this trend, favoring Bitcoin over traditional hedges like gold to protect against inflation. This is an especially relevant point for advisors who recognize and appreciate the reality that Millennial and Gen Z investors will be inheriting an average of $4 trillion per year for the next 20 years. The largest intergenerational transfer of wealth in history, which is the greatest opportunity for High-end Financial Advisors in the history of our industry.
The good news for you is that 90% of our beloved industry doesn’t realize this tidal wave is coming, are doing nothing to prepare for it, and will be surprised when it begins hitting hard over the next 10-20 years. This is good news for you, and the small group willing to recognize this as a market opportunity you can fill right now. Literally no Financial Advisors are skilled at advising about Bitcoin in routine planning conversations (statistically zero). Translation: more for you!
Siegel has also linked Bitcoin’s appeal to periods of financial instability. When trust in traditional banking systems falters, alternative assets like Bitcoin gain appeal. This was evident during the global financial crisis in 2008 and the banking turmoil of 2023. This distrust of financial institutions and central bank manipulation of interest rates continues today, recall the foolish and inaccurate comments the Chairman of the Fed made about Bitcoin earlier this week? Also, increasingly clients seek diversification strategies that go beyond the conventional. And, as I mentioned, more and more nation states have begun using Bitcoin in their national treasuries and payment systems, and easing regulatory obstacles, in an effort to shield their countries and their people from abusive and corrupt banks and financial institutions.
What It Means for Advisors
For high-end advisors working with affluent clients, Bitcoin’s journey past $100,000 is more than just a headline—it’s a signal. The conversation about Bitcoin is no longer a niche interest confined to tech enthusiasts; it’s becoming a mainstream topic among serious Financial Advisors, as well as entrepreneurial clients and forward-thinking business owners.
This presents a dual opportunity. On one hand, advisors can help clients evaluate whether or not Bitcoin fits into their broader financial strategy, aligning with their long-term goals and risk tolerance. On the other, it’s a chance to solidify your position as a forward-looking professional who understands newer, yet well-established, asset classes like Bitcoin, without getting swept up in the hype. As Financial Advisors, for the last 50 years we’ve claimed we’re on the look-out for any solid-performing asset class, especially ones that are uncorrelated or negatively correlated with the traditional asset classes, especially equities. Well, Bitcoin fits that and has fit that profile for more than a decade. Unfortunately I just kept hitting the snooze button. …for years!
Bitcoin is an asset delivering an average annual return over the past ten years that has been 4-5 times better than the equity markets, but with 4-5 times the volatility. So I ask you, isn’t that suitable for a portion of some clients’ portfolios? I’d go further and suggest ignorance or apathy won’t be a good excuse when asked why Bitcoin was never considered for certain clients who have long-term objectives. Failing to understand Bitcoin is a fiduciary liability for you, in my opinion, and I’d like to help fix that. For me, I’m going to begin crafting step-by-step education for Financial Advisors who offer Comprehensive Financial Services and want to better understand this asset class.
A Fun Yet Cautious Future
It’s tempting to imagine Bitcoin soaring to even greater heights, but advisors know better than to let excitement overshadow prudence. The 24/7 volatility inherent in the Bitcoin market is not going away, and advisors must help clients balance enthusiasm with a clear understanding of risks.
Still, there’s no denying that Bitcoin’s $100,000 milestone represents a moment of transformation. As Jeremy Siegel and other thought leaders have pointed out, the asset is evolving, the market is maturing, and the opportunities—for those who approach it wisely—are growing.
So, as you sip your coffee and prepare for your next client progress meeting, consider this: Bitcoin isn’t just a disruptor anymore. It’s part of the broader financial conversation. And as a high-end financial advisor, being part of that conversation is exactly where you belong.
Follow-up Note: If you’re looking for a single simple, small first step, start listening to the Bitcoin for Advisors Podcast (wherever you find your podcasts). Morgen Rochard started out working on the floor of a major stock exchange in NYC, now part of the NYSE. However her first day on the floor was the day the Global Financial Crisis (GFC) first came to light in worldwide media. She’s now a CFA and High-end Financial Advisor to affluent clients offering Comprehensive Financial Services in Texas. She’s an internationally recognized, leading expert in Bitcoin.
The podcast features conversations between Morgen and Pierre Rochard, around Bitcoin issues relevant for Financial Advisors. Pierre is a “Bitcoin OG” (Original Gangster). A term in the Bitcoin community which describes the pioneers in the early days of Bitcoin, who are responsible, in part, for where Bitcoin is today. Financial Advisors will love Pierre because he ends up being a masterful macro-economist, far more veracious than Jerome Powell et. al., and will help our community find easier ways to explain massively complex issues. Fundamental issues such as, “What is money?” which most Financial Advisors would have a hard time discussing with a Bitcoiner client, who probably has better responses than most Financial Advisors on that topic (for the record, that’s NOT GOOD, and we need to raise the level our game using Bitcoin as a starter).
Enjoy the podcast, and especially the episode discussing the $100k Bitcoin accomplishment. It is phenomenal (S01.E18).
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