Fortune Favours the Brave
Should you be investing in Bitcoin or other cryptocurrencies?
You have probably seen the commercial with Matt Damon promoting Crypto.com. At least two different companies have purchased Super Bowl adds to promote their crypto-trading platforms. In fact, I hear that Intuit / Turbo Tax is even offering to send your tax refund to Coinbase for investment in crypto.
Let’s examine the script of the Matt Damon commercial.
“History is filled with almosts.”
“Those who almost adventured, almost achieved … but ultimately for them it proved to be too much.”
“Then there are others….who embraced the moment and committed. In these moments of truth…these men and women….these mere mortals just like you and me, as they peer over the edge, they calm their minds, and steel their nerves with four simple words that have been whispered by the intrepid since the time of the Romans.”
“Fortune Favours the Brave.” (1)
Fade to a picture of outer space.
Fact check and a bit of history. Yes, those words came from the time of the Romans and were said by Gaius Plinius Secundus (AD 23/24 – 79) known as Pliny the Elder (and yes, it is also the name of a popular beer). He was a Roman author, naturalist, natural philosopher and naval commander in the early Roman Empire. Pliny was called upon to embark on a rescue mission when Mount Vesuvius erupted.
While enroute across the Gulf of Naples, cinders and pumice began to fall on his ship. The helmsman urged him to turn back to which Pliny replied, “Fortune favours the brave” and sailed on.
Upon landing, a plume of hot toxic gasses engulfed them. Pliny died of asphyxiation from the toxic gases. His body was later recovered with no external injuries. (2)
What does Pliny have to do with crypto-currency investing? Maybe as much as his name has to do with beer. In my opinion, nothing. So why use his words in expensive TV ads?
Perhaps because it will make you feel empowered, different, hip, cutting edge. Accumulating wealth is not about getting rich quick. It is a thoughtful process with discussions of priorities, timelines, volatility, and returns.
Keep in mind that crypto is not an asset class, nor a company that makes a product, nor earns a profit. The price goes up when there are more buyers than sellers and down when more sellers than buyers. Your ability to spend it is as of now, limited. It is not necessarily a private transaction. Nor are transactions necessarily hidden from the IRS.
Enjoy the Super Bowl and of course the commercials….especially the crypto-commercials….Manning brothers selling potato chips, Frito-Lay and the Night Before the Superbowl, Flaming Hot “ooo baby baby”….the fun is back.
Make sure you have a written financial plan. Make sure that your plan is the driver of your investment selection. Avoid making investment decisions based upon hearsay, hunches or feelings. Wollman Wealth Designs, Inc is a financial planning firm with an office in Escondido, Ca and serving clients in Southern California and around the country. Call or email us with questions or comments.
https://en.wikipedia.org/wiki/Pliny_the_Elder
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