THE TRUTH ABOUT YOUR FUTURE with Ric Edelman

Episode Summary: Ric's Final Podcast—The Most Important Personal Finance Message, Part 3

Date: December 27, 2024
Host: Ric Edelman
Guest: Mike Novogratz (Founder & CEO, Galaxy Digital)

Episode Overview

Ric Edelman closes out his storied 35-year broadcasting career and three-year daily podcast series with a final, passionate message about the future of personal finance. In "The Most Important Personal Finance Message, Part 3," Ric singles out cryptocurrency—specifically Bitcoin and digital assets—as the game-changing asset class everyone should pay attention to moving forward. He’s joined by crypto pioneer Mike Novogratz for a candid, insightful discussion on why digital assets are essential, how the industry is evolving, and what investors and advisors need to know now.

Key Discussion Points & Insights

1. Ric Edelman’s Legacy & Why He’s Passing the Torch

• Opening reflections: Ric humorously marks his last podcast after 1,500 radio shows and 500 podcasts, sharing gratitude for his team and listeners.
• Creation of the financial radio genre: Ric recounts being the first financial advisor to host a radio show, which inspired countless similar programs across the US.
  • “I was the first financial advisor, the first financial planner to host a radio show. I created the genre..." (03:52)
• Impact on financial literacy: Emphasizes the importance of copycats, noting the vast need for reliable financial education and advice.

2. The Final, Most Important Message: Crypto—Don’t Ignore It

• Why Crypto Now? Ric reveals his parting guidance: The most impactful thing you can do for your financial future is understand and engage with crypto.
  • "If you only do one thing, what might it be? I would tell you to pay attention to... Crypto." (06:52)
• It’s Not Too Late: Dispels the myth that the window for Bitcoin gains is closed.
  • “It’s not too late. You haven’t missed anything. The fact that you didn’t buy bitcoin last year or 10 years ago… it’s because you’re a prudent individual.” (07:28)
• Reduced Risk and Increased Legitimacy: Ric explains that Bitcoin’s early phase was risky and speculative, but current conditions and upcoming regulations lower risk significantly.
• Political sea change: Outlines how the incoming US administration is poised to support crypto, unleashing its potential in the financial sector.
  • "Donald Trump has demonstrated he is a very strong advocate for crypto... All [Biden's regulations] could do was slow it down, but he couldn't stop it. And no government can." (09:22)
• Institutional adoption is coming: Regulation is improving, and massive institutional money (pensions, endowments, banks) will soon flow in.
  • "We’re going to see new regulation...a majority of both parties. They’re going to bring forth legislation that’s going to allow…banks, insurance industry, credit card industry to engage fully..." (10:47)
• Industry leaders change their tune: BlackRock’s Larry Fink and Schwab’s Rick Wooster shift from skepticism to embracing crypto.

3. The Core Principle: "Get Off Zero"

• Portfolio advice: It’s wrong to have zero exposure to this exploding asset class. The allocation size (1%–10%) should be based on your circumstances, but zero is not acceptable.
  • "The only number that's wrong is zero." (12:38)
• Advice for working with your advisor: If your financial advisor can’t discuss crypto, find one who can.
  • “If your advisor isn’t talking to you about crypto… it’s time for you to find a new financial advisor.” (13:44)

4. Mike Novogratz’s Crypto Journey: A Firsthand Account (15:00–28:00)

• Transition from Wall Street to Crypto: Mike details how curiosity and macro trends drew him from Fortress Investment Group and Goldman Sachs into Bitcoin.
  • “I googled it. And it was trading about 95. And I read about it, I was thinking I was a macro investor and bitcoin’s a macro asset.” (16:17)
• Influence of friends and early research: Connections with Pete and Dan Moorhead (Pantera Capital) were instrumental.
• Ethereum’s promise: Friend (Joe Lubin, cofounder) leads to understanding smart contracts and decentralized finance.
• Building Galaxy Digital as a bridge between TradFi and crypto: Mike wanted to work with young entrepreneurs, learn new technology, and help communicate crypto’s value to traditional finance.
  • "I thought I could bring...the metaphoric gray hair to all these young energetic crypto people and also be a bridge to explain this kind of weirdo world to traditional finance.” (21:25)

5. The Coming Age of Institutional Crypto Adoption (24:50–27:00)

• 2025–2026: Regulatory “unlock”: The US is poised for new, crypto-friendly regulations, paving the way for gigantic institutional participation.
  • “Trump says, 'I’m going to be the crypto president.' You cannot underestimate how important that is.” (24:52)
• Ripple effects around the globe: Other countries, like the UAE, are turning on crypto in response to the US, expecting the changes to drive even more adoption.
• Integration with the banking sector: Traditional behemoths like Goldman Sachs, Bank of America, and Citi will soon be able to custody and trade digital assets.

6. Ways to Invest in Crypto & Portfolio Allocation (31:41–37:05)

• Novogratz’s advice for novices and advisors:
  • “Start small, put 1% of your assets in. What’s the worst that can happen?...It’s not going to kill you. Bitcoin has outperformed any asset…” (31:41)
• Biggest wealth transfer in history: Over the next 15 years, massive intergenerational wealth ($40 trillion) will shift from boomers to younger generations who prefer digital assets.
  • “We’re about to enter the greatest wealth transfer in the history of planet Earth…” (32:13)
• What makes bitcoin valuable: Not technology alone, but its network, brand, and accepted social construct.
  • “What gives it its value is the brand. It’s the social construct. You think it’s valuable, I think it’s valuable, and therefore it’s valuable.” (33:13)
• For sophisticated investors: A 10–15% allocation in crypto could be appropriate, provided they understand and can stomach volatility.
  • “I think 10 to 15 is a pretty reasonable number for a wealthy family…” (36:25)
• If you have $5B and lose 80%, you still have $1B—size matters! (36:58)

7. Market Predictions & The Future (37:53–39:36)

• Price predictions:
  • “Gold is a $16 trillion asset, which makes Bitcoin $800,000. Sometime in the next five to seven years…” (38:08)
  • For next year: $180k per BTC is reasonable (39:03)
• Adoption cycle: Macro instability and US government support will unleash a monster adoption cycle.

8. How to Access Crypto (40:03–43:03)

• Multiple vehicles for exposure: ETFs, managed funds, direct purchase, etc. For most people, funds or ETFs are simple and secure.
  • “I think for 98, 99% of people out there, you can put it in a bitcoin fund. You can buy the ETF…” (40:05)
• Personal story: Mike’s $100K bitcoin giveaway to teach real-world utility and to “orange pill” others.
  • “It was called a Bread Wallet… I gave away a hundred bitcoins when it was a thousand. Bitcoin?” (41:04)
• Brand value: Bitcoin as one of history’s fastest-growing, most global brands, rivaling Apple.

9. Final Thoughts and Ric’s Parting Message

• Ric’s closing: The only truly wrong choice is zero allocation. The wide variety of low-cost access routes and surging optimism mean the only barrier is inertia.
• Encouragement to stay connected: Ric invites listeners to follow him into his next stage—through blogs, conferences, and more.
• Grateful signoff:
  • “It’s been so much fun to be with you. It’s been a genuine honor. I’m thrilled to have been able to spend the time with you, and I hope we’ll be able to spend a lot of time together as I enter my next chapter.” (44:33)

Notable Quotes & Memorable Moments

• On copycats & legacy:
  • "I love to see the copycats because the need is so much bigger than any one person can produce… it’s really important that others continue this legacy.” (05:22)
• On Bitcoin adoption:
  • “It’s inappropriate for someone who holds a long-term diversified portfolio to exclude the newest and fastest growing asset class.” (12:30)
• On political shifts:
  • “Trump says, ‘I’m going to be the crypto president.’ You cannot underestimate how important that is.” (24:52)
• On advising financial advisors:
  • “If your advisor isn’t talking to you about crypto… it’s time for you to find a new financial advisor.” (13:44)
• On generational wealth transfer:
  • “We’re about to enter the greatest wealth transfer in the history of planet Earth...” (32:13)
• On Bitcoin’s social value:
  • “What gives it its value is the brand. It’s the social construct.” (33:13)
• On bitcoin price potential:
  • "Gold is a $16 trillion asset, which makes Bitcoin $800,000. Sometime in the next five to seven years, I think we take out gold." (38:08)
• On the arrogance of skeptics:
  • “The arrogance, the sheer arrogance to say there’s no value. It’s just bizarre.” (42:15)

Timestamps for Key Segments

• 00:33–03:52: Ric reflects on his radio and podcast career, impact, and gratitude.
• 06:18–13:55: Ric’s most important message—engage with crypto; it’s not too late.
• 15:00–23:21: Mike Novogratz recounts his journey into crypto and early adoption experiences.
• 24:50–27:27: Discussion on how institutions will embrace crypto and what’s coming in regulation.
• 31:41–37:05: Advice for investors on allocation and first steps into the space.
• 37:53–39:36: Mike’s price forecasts and rationale for optimism.
• 40:03–43:03: How to get exposure to crypto; personal anecdotes on mass adoption.
• 44:33: Ric’s emotional final sign-off and reflections.

Conclusion

Ric Edelman’s final episode is a rallying cry for listeners: In a world of exponential technological change and shifting political winds, digital assets have matured into an essential—possibly generational—component of a smart, future-focused portfolio. With the expert perspective of Mike Novogratz, listeners are urged to “get off zero,” start learning, and invest with prudence, but not inaction. Ric’s voice will continue in other domains, but his last podcast message is clear: learn about crypto, engage with it thoughtfully, and don’t let inertia hold you back.