DETROIT – Cryptocurrency is the hot new financial phenomenon -- but what is all the excitement about? And should you buy some?
Local 4 Business Editor and Certified Financial Planner Rod Meloni has some answers and perspective. He said he doesn’t think much about Bitcoin. He is not a fan of “the hot new thing” when it comes to money -- especially electronic currency with no backing.
If you purchased $100 worth of Bitcoin in 2011, it would be worth around $7 million now. Planning Alternatives CEO Nathan Mersereau said Bitcoin and the others that have popped up fly in the face of his money preaching.
Financial planner Rick Kahler also has a warning. Just because something is popular doesn’t mean it’s safe and doesn’t mean that it belongs in a person’s retirement portfolio.
Kahler said the three ways to grow your money are by saving, investing and speculation. Speculation is gambling.
If you want to take a small amount of money and try crypto currency, think of it as money you’d spend at a casino. Don’t look to it as a way to send your kids to college or make for a better life in retirement.