This Super Sunday crypto companies
will be trying to get your attention,
but should you be buying into their currency?
Senior wealth advisor Brad White is
joining us to share what investing
in crypto really means, Brad.
We have seen a lot of crypto headlines,
a lot of commercials even pop up ads.
Should we be tempted?
I I admit I don't really know
much about cryptocurrency.
And still a little fearful
about dabbling into that arena.
Yeah, well, in case you haven't
heard of this, little thing called
crypto this whole time, right?
Apparently you will certainly
be inundated with this.
Come this Super Bowl Sunday.
It's actually causing a lot of these
headlines and articles to dub it crypto
bull right instead of Super Bowl.
There was actually this video from a
famous Miami Heat basketball player
Jimmy Butler recently saying, hey,
I just want everybody to know you're
going to see tons of these crypto company
ads on Sunday and look they don't know you.
They don't know your situation.
Make sure you do your own research.
At first I was like wow
like how pragmatic is that?
What a great piece of advice.
I was thrilled to see it.
And then I learned this was
actually an ad from finance,
which is the world's largest crypto
exchange right which once again kind
of prompted me to give this message,
which is just be really careful about
the difference of advertisements right
versus legitimacy towards whether
you should invest your money or not.
OK look,
that's the job of marketers and advertisers,
right?
There's 100,000,000 eyeballs
that watch the Super Bowl.
It's unlike anything else
you could ever advertise in.
$7 million for every 30 seconds,
by the way.
So just because you see tons of these
ads and tons of these advertisements
and celebrities doing that,
it doesn't really tell you
anything good or bad, right?
Either direction about whether
you should invest it or not.
And that's something maybe we could even
elaborate on a little bit more here.
I think, though, that the issue is
that it is becoming more mainstream,
and we've got the Staples Center,
which is now labeled crypto
arena crypto.com arena,
so it seems to legitimize it.
And then you've got these athletes or
high profile people doing advertisements.
What is the risk for someone who
may not know what this orbit is of
cryptocurrency to try and and invest?
Someone may say like?
Well, maybe I'll just do a
little bit to get my feet wet.
Yeah, so it's the legitimacy of
what the perceived legitimacy
that actually makes me worried.
I'm gonna tell some stories here that
this reminds me a bit of tulips, right?
Which sounds like the weirdest thing
in the world to compare it to.
It's a very, very famous story that
financial advisors in our industry
tell clients all the time to warn
them about bubbles and the hole
in Holland in the 19 in the 1600.
Excuse me somebody from Turkey
brought over these.
Very rare, very expensive tulips
and essentially the Dutch went
crazy over them and anybody who
was anybody just had to have them,
and they bid these tulips and again
flowers to astronomical prices.
It literally costs people to buy
them in bulk to resell them later,
which worked well for years.
It caused people to quit their jobs and
industries to get in the Tulip game
until eventually someone realized,
Oh my gosh,
look how much I could sell this
stuff and look at all the real
world things I can buy for this.
So they started to sell,
which prompted more selling which
prompted the market to crash.
And really hurt a lot of people.
Now you might be thinking, well,
that's the 1600 and that's flowers,
Brad.
Alright,
let's go to the 1960s in our country.
Any company would change their name
to have the word tronics in it and
the stock would immediately sore
'cause everybody was convinced if it
had something to do with electronics,
they'd make a lot of money.
And this most recent one you'll all remember,
right?
Any company in the world would
namethemselves.com anything.
And by the way,
lots of Super Bowl ads in the late 1990s,
early 2000s around.com, right?
Because they want to legitimize all
these companies? Andthe.com era.
We all know the Internet itself
was very legitimate.
It revolutionized the world
that changed everything.
But does that mean an individual company
or an individual stock or investment
should be worth a certain price?
Because it's just a fad and
everybody has to have something
with it for you here ads or see
celebrities talking about it.
That's my moral the story.
It's not to say that crypto is
necessarily good or bad.
We can talk about whether you
should invest in or not.
This is my little PSA to kind of tell
some of those stories and just remember,
these are advertisements.
It doesn't tell you anything one way
or another about the legitimacy of
what the price is worth or whether you
should get it now or how to do it.
Let's go all the way back to
just crypto 101. Just briefly,
we only have about 30 seconds left.
You know, for people who
aren't familiar with it and
it's becoming more mainstream.
What is crypto currency?
It's something
it's digital currency, right?
And this started out as an
alternate form of payment, right?
And it's obviously grown over
the last decade into something
that now everybody is aware of,
and there is more legitimacy.
So I want to be clear that this isn't
something like flowers in the 1600s.
I want to make that clear.
There is a lot of demand,
or there's a lot of value
in digital currency.
We probably don't need
paper currency ever again.
If we get 10 or 20 years
into the future for now,
blockchain technology has
a lot of applications.
There's a lot of good here,
but essentially it's only worth what a
buyer or seller agree it's worth right now.
It's not backed by anything else,
so right now this whole
thing is this trust of hey,
I think it's worth this and
you're willing to exchange
goods and services for that.
And that's really all it is.
Is a digital currency that we're
kind of just agreeing on a price for
goods and services with each other.
Thank
you for the 411 on that and the
little PSA still sounds a little
sketchy to me, but I know some
people out there want to try it.
Brad White senior wealth advisor.
Thanks so much for sharing your
insight with us today. Very welcome.