Economists in the Ozarks explain Cryptocurrency fallout
SPRINGFIELD, Mo. (KY3) - More than $200 billion was wiped off the cryptocurrency market in one day this week. Economists and financial advisors in the Ozarks explain the fallout.
David Mitchell, professor of economics at Missouri State University, said the world of crypto is vast.
“I don’t want to say it’s like going to Vegas, but it’s getting pretty close to going into Vegas,” said Mitchell.
Financial planning is already hard work, and Mitchell and financial advisors said putting your life savings into crypto isn’t worth it.
“It’s still highly volatile,” said Mitchell. “People don’t exactly know what it is. It’s almost a bandwagon effect.”
“There is just a lot of uncertainty out there,” said financial advisor Eric K. Peterson. “Uncertainty is the worst thing that can happen to the markets.”
Mitchell said people are uncertain of crypto’s future.
“What good is it to you to hold them because there’s no intrinsic value?” said Mitchell. “It’s not like gold or silver, where you can actually take that and put it into a computer or piece of jewelry or something like that.”
Eric K. Peterson, CFP® of Peterson Wealth Advisors in Springfield, said legally, he can’t sell cryptocurrency because of its state.
“Sorry, too volatile, too crazy, too new for us to be able to approve them, to be able to approve people like me to be able to sell that,” said Peterson. “That should be fair warning.”
Both Mitchell and Peterson said the safe bet is returning to the ol’ bread and butter.
“S&P 500 is risky enough for most people, but over long periods of time, you’re going to be able to, you’re going to see gains,” said Mitchell.
“For every market downturn there’s been in history for everyone, the market is fully recovered from that downturn, and reached all-time, new highs every time,” said Peterson.
However, financial advisors said don’t jump into something you don’t know a lot about and do extensive research if you are going to invest so you don’t ruin your future.
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